Wilko’s profits before tax have risen 15% in what the company has hailed a “year of recovery” following a “challenging” few years.
The value retailer’s profits before tax went from £22.479m to £25.955m for the year to January 30, 2016, while sales inched up 1.4% to £1.46bn.
The group said the rise in profits was due to it having tighter control on costs following its decision to restructure, making some head office roles redundant.
It also said that the festive season had been strong, but declined to give figures.
Wilko, formerly known as Wilkinson, is investing in its supply chain and information technology, and is in the process of implementing its new forecasting and replenishment system. The system is designed to improve operational efficiencies and so release working capital. It is due to be completed at some point during the current financial year.
Wilko opened eight new stores and relocated four more during the year to January 30. It is particularly focused on expanding in London, where it feels it is under-represented. It now has more than 370 stores nationwide.
Chief operating officer Sean Toal and chief financial officer Aidan Connolly said in a statement: “2015 has been a much more successful year after the challenging years in 2012, 2013 and 2014. The board is more optimistic about the future and expects to deliver further profit growth during 2016.”