Matalan has reported a rise in its profits and revenues during the 2018/19 financial year, “outperforming the market in what remains a tough retail climate”.
The fashion and homeware retailer posted revenue growth of 3.8% to £1.1bn for the 52 weeks to 23 February.
Profit before tax increased 50.5% to £30.1m year on year for the period, while full-price sales were up 3.2%.
However, EBITDA dropped 2% to £102.4m during the year. It was expected to be in the range of £100m to £102m.
Jason Hargreaves, chief executive officer of Matalan, said: “The business has performed very well this year, outperforming the market in what remains a tough retail climate. In uncertain times, we are well positioned in offering the great design, quality and value that appeals to savvy customers.
”A very strong underlying sales, margin, and cost management performance has enabled us to absorb a £39m currency headwind. This has delivered stability of EBITDA and an increase in profits before tax.
”Our strategy has added more choice to a strong core product offer while improving the shopping experience via refurbished store space and an enhanced online journey. We also continue to invest in infrastructure that helps us operate more efficiently. Well managed execution has enabled growth to accelerate this year in both complementary store and online channels, online growing by over 30%. We have achieved this while managing the promotional mix sensibly in what has been a distressed market.
”We exited the year with good momentum, delivering a strong final quarter of growth in sales and EBITDA as the currency headwind, whilst still adverse, began to reduce in scale. We expect market conditions to continue to be very challenging, and so remain cautious for the year ahead, focussed on the execution of a strategy that is clearly working.
”I would like to thank all of our great colleagues for their hard work and commitment and am confident with their support we will continue to grow the business and outperform the wider market.”