Bonmarche's share price jumped more than five per cent as the value retailer revealed soaring pre-tax profits and solid revenue growth.
The recently-listed retailer, which is aimed at older women, grew revenues 8.7 per cent to £178.6m, with like-for-likes up four per cent. Including online sales, which were up 36 per cent, like-for-likes climbed six per cent.
EBITDA up 13.6 per cent to £15.5m, while pre-tax profits jumped 55.3 per cent to £12.4m. Margins were up two per cent.
The company is recommending a final dividend of 4.5p per share, taking the full-year dividend to 6.8p per share.
Why it's interesting:
Three years ago Bonmarche was in the wilderness, having entered administration in January 2012 along with parent company Peacocks. It was bought out for £10m and listed late in 2013.
Under Beth Butterwick's management the company has turned its fortunes around, with strong growth online – an area previously dismissed as too young for Bonmarche's 50-plus target market – and improving both product and the store portfolio.
Unlike some of the other high street names – notably Marks & Spencer, which could be said to be a rival – Bonmarche said it had been “supported by good weather” in the first half of its financial year.
What Butterwick said:
"I am satisfied with the current year's performance, in a year of contrasts between a strong performance in the first half, supported by good weather, versus a more challenging second half of the year.
"Against this backdrop, we have continued to deliver improvements across the business and have achieved solid profit growth. The group's financial position is sound, and we enter the new financial year with a strong balance sheet and confidence in our ongoing growth strategy."