26th Mar 2014 12:24
LONDON (Alliance News) - Moss Bros Group PLC, the men's suits hire and formalwear retailer, Wednesday said higher profits and revenues in its recent financial year, as well as an overall improving like-for-like sales trend in the business, have inspired a big dividend increase.
In an upbeat trading statement back in January, Moss Bros had said that an improved sales performance over Christmas, together with tight cost control and the rigorous clearance of stock, meant that it would be ending the year better than previously expected.
On Wednesday the clothing retailer declared a total dividend for the year ended January 25 of 5.0 pence per share, up from only 0.9 pence a year earlier. Moss Bros said it has entered the new financial year with a strong balance sheet and a commitment to a significantly increased dividend.
It said that revenues rose to GBP109.1 million for the year just ended, up from GBP105.5 million the prior year, boosted by a huge increase in e-commerce sales, which it said now represent 5.1% of total sales.
Moss Bros said group like-for-like sales for the year to January 25 were up 4.2%, with like-for-like retail sales up 6.4%. It said like-for-like hire sales were down 6.4%, due to a shortfall in suit hire for weddings.
Its pretax profit increased to GBP4.4 million, compared with GBP3.1 million a year earlier.
During the year, the retailer invested in its UK store estate, launched a new hire website, and developed a number of international websites for its retail business, as well as expanded its product offerings, which Moss Bros said all contributed to the increases in sales and profits for the year.
The group said it opened two new stores in the year just ended, and refitted 13 of its stores as part of an ongoing refit plan, which it said are currently performing to expectation.
Moss Bros gave a positive outlook for the year ahead, saying it is on track to achieve market expectations for the current financial year. It said sales in the first eight weeks of the new financial year are up 7.3%, and retail sales continue to show good growth. The retailer also said that after a difficult 2013 for the wedding hire industry, early season bookings for 2014 have stabilised, and March has seen an upturn in bookings compared to last year.
Moss Bros said that this year it will accelerate its store refit programme and build on its multi-channel offer in the UK and internationally, by expanding into new territories.
"The ongoing cash generation of the business will support the continued investment in store refits and develop our multi-channel capability. 2014 will see an increase in marketing to support the opportunities identified in the findings of the customer insight project, conducted in 2013," said Chief Executive Officer Brian Brick in a statement.
On January 15, clothing and home-furnishings retailer Laura Ashley Holdings PLC sold its entire 9.6% stake in the men's formal-wear chain for just under GBP8 million.
Shares in Moss Bros were up 1.4% at 101.80 pence per share Wednesday midday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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