Matalan cautious on consumer spending despite profit jump

 
Kasmira Jefford
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BUDGET clothing and homeware retailer Matalan yesterday posted a 10 per cent surge in full-year earnings thanks to a strong boost from its online business.

The privately-owned group, which runs 216 stores in out-of-town locations around the UK , said earnings before interest, tax, depreciation and amortisation rose to £100m in the year to 23 February.

Online revenues jumped by 45 per cent, helped by the roll-out of click and collect across its stores.

“Our customer base continues to grow, as does our multichannel capability, leaving us well positioned for the coming 12 months,” Darren Blackhurst, chief executive of Matalan said.

However, he expects challenging trading conditions to continue.

Total revenue nudged up to £1,125.4m in the period compared with £1,117.5m in 2012, and the business ended the year with £120.7m in cash.