Retail group behind Wilko and The Range returns to profit

Owner Chris Dawson’s company Norton Group Holdings, posted a pre-tax profit of £10.5m in the year to February 2 2025, in accounts filed with Companies House.

Some of this figure was recorded before the group acquired Homebase in late 2024, and shows a contrast with the group’s pre-tax loss of £14m the year before.

Revenue increased from £1.29bn to £1.47bn in that time. The group said £104m of the revenue rise is down to its retail store portfolio.

In its new filings, it said the 53 Homebase stores it purchased should add hundreds of millions of pounds in revenue for the current financial year.

It also said it expects its sales to exceed £1.7bn in the current financial year which will allow it to “return to significant levels of profit” in the future.

The group said in a statement that it has been a “successful period” for the business, despite poor summer weather impacting sales of patio and outdoor ranges.

It added: “The group continues to face increases in its costs of goods, alongside the uncertainty surrounding energy costs.

“The material increase in national living wage is further squeezing profitability within the group, however, this is being offset by the efficiencies that are being driven within our stores and wider estate.

“While this impacts the group, it also has the potential to impact our customers who are seeing their disposal income squeezed.

“The group is well positioned to withstand these challenges operating in the value retail sector.”