Discount department store the Original Factory Shop has edged sales towards the £200m mark despite coming up against challenging conditions in the retail industry.
The Burnley-headquartered company, which is backed by mid-market private equity firm Duke Street Capital, operates more than 200 stores across the UK and sells a wide range of goods including clothing, sportswear, footwear, electrical and household, gardening, toys and gifts, fashion accessories and beauty products.
For the year to 2 April 2017, the retailer reported turnover of £190m compared to £185m the previous 12 months.
Gross profits were up from £83.5m to £85.5m but down after exceptional items to £79.7m. Pre-tax profits fell from £6.34m to £4.74m, and also took a hit after exceptional items, dropping from £6.02m to a loss of £2.33m.
Exceptional items amounted to £5.85m and mainly included £2.6m in relation to stock differences following a full review and reconciliation of the stock file, and £3.1m regarding impairment of stock associated with clearing items following a management decision to implement a new strategy to eradicate the business of all aged stock.
Emma Fox, chief executive of The Original Factory Shop, told Insider: “Joining the business during what has been a challenging year for retail, I am pleased to report that The Original Factory Shop has grown revenue, and that momentum has been maintained on investing in and implementing the company’s growth strategy.
“We have been encouraged by how local communities have welcomed our newly opened stores. It is exciting to have expanded our portfolio to over 220 store locations.
“The directors remain confident that, despite the uncertainty in the UK’s retail sector overall, the business is well-positioned to benefit from the opportunities in the value retail sector.”
Original story: Insider Media