Profits at footwear retailer Office plunged last year, hit by costs relating to its sale to South African firm Truworths in 2015. Having extended its accounting period to 26 June 2016 to match that of the wider Truworths group, EBITDA for the 74 weeks fell 67% to £37.6m as a result of “transaction related costs”, while its operating profit dropped 48% to £29.2m. However, sales were up 30% to £387.8m during the period.
When it posted these figures in January, Office said it was well-funded and cash-generative, and intended to continue expansion of its multichannel business, although it did not give details. Given the tough conditions facing footwear multiples – Shoon, Jones Bootmaker and Brantano have all collapsed into administration within the past year – it remains to be seen if Office’s confidence is justified.