Card and gifting retailer Clintons has returned to profit after a period of distress that included a restructuring plan and store closures.
The retailer posted a pre-tax profit of £38m in the year to June 29, 2024, according to new accounts filed with Companies House.
Clintons previously recorded a pre-tax loss of £5.3m in the previous mer financial year, which was its first pre-tax loss since 2020 at a decline of £16.9m.
Sales reached £82.6m for the year but this was a decline from £96.5m the year before.
In 2023, the retailer was forced to close 38 stores after an insolvency court approved a restructuring plan to avoid a total collapse of the business.
The new accounts show that Clinton axed more than 300 jobs in the year to June 2024 as its headcount decreased from 1,757 to 1,415. Its store estate is now made up of around 170 units.
The retailer was bought by Pillarbox Designs in March 2024 and in a statement approved by the board, it said there was a “significant impact” on profitability levels due to the restructuring plan that “removed certain liabilities and reduced the level of business rates paid to March 2024”.
It continued: “Sales totalled £82.6m for the period and the directors feel this is a satisfactory performance, given the circumstances.
“The company has continued to close loss-making stores and the portfolio of retail stores is now down to approximately 170 stores.
“Sales growth continues to be a challenge and the location of stores remains key to achieving this.
“The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year.
“The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards.”
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