10th Jun 2016 07:07
LONDON (Alliance News) - Bonmarche Holdings PLC on Friday reported a fall in profit in its recently-ended financial year as it booked higher costs than in the prior year, but revenue rose despite the retailer reporting tough trading conditions resulting from poor weather conditions.
The women's value retailer said its pretax profit in the year ended March 26 fell to GBP9.6 million from GBP12.4 million the year before, despite revenue rising to GBP188 million from GBP178.6 million.
Revenue was boosted by 0.7% growth in store like-for-like sales and 3.6% growth in online sales, although Bonmarche did note that unseasonal weather conditions during the year gave customers "little reason" to make seasonal purchases. Other clothing retailers had also reported that sales were hit by warmer-than-normal weather in the run up to Christmas and colder-than-expected conditions post Christmas.
Bonmarche added the start of the new financial year has continued to be tough "due to poor weather" but left its full-year expectations unchanged, providing trading conditions normalise.
Meanwhile, profit was hit by an exceptional cost of GBP1 million, having not booked any exceptional charges the year before, plus increases in administrative expenses and distribution costs.
Bonmarche will pay a total dividend of 7.1 pence for the year, up 5% on the 6.8p paid the year before.
"Bonmarche's performance for the year has been achieved amidst the difficult trading conditions widely reported across the retail sector. We have emerged from this period with a clear focus on our five key strategic pillars for growth. With significant improvements for the benefits of our customer, we are focused on driving our modernisation plan over the coming year. We firmly believe that with its unique position as a niche retailer, focused on catering for the mature female demographic, Bonmarche is well placed for the future," Chief Executive Beth Butterwick said in a statement.
Shares in Bonmarche were untraded Friday morning, having last closed at 129.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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