Value department store group Original Factory Shop has posted a fall in profits after a “challenging year” but is confident of continued long-term growth.
The 170-store retailer, owned by private equity house Duke Street, reported EBITDA down from £14.9m to £13.3m in the year to March 27, when it also invested in development.
Sales rose 16.4% to £158m in the period, when like-for-likes edged down 0.8%.
During the year Original Factory Shop opened 31 stores, with a capital investment of £4.7m, rolled out an Epos system, expanded its warehouse and launched a transactional website.
Original Factory Shop chief executive Angela Spindler said: “In what was a challenging year, we achieved a credible result and made significant progress in developing the business.
“We had our record year for store openings and launched trading on our website which has introduced new customers to us and is trading very successfully.
“Since year end we have further strengthened our senior team, opened 7 stores and are continuing with our refit programme.
“Trading conditions remain tough however we are confident we will continue to scale the business and believe there is scope for 500 stores throughout the UK.”