Bonmarché posts 27 percent increase in annual profit

Reporting its preliminary results for the 52 week period ended March 31, 2018, Bonmarché said, the group's profit before tax was 8 million pounds (10.5 million dollars), a 1.7 million pounds (2.2 million dollars) or 27 percent increase on the FY17 underlying PBT of 6.3 million pounds (8.3 million dollars). Total sales for the year declined to 186 million pounds against 190.1 million pounds last year.

Commenting on the preliminary trading update, Helen Connolly, Chief Executive of Bonmarché, said in a statement: "Against the backdrop of challenging trading conditions, I am pleased that we have delivered an increase in profit before tax compared to last year. Whilst we expect the market to remain difficult, trading since the beginning of the new financial year has been stronger than during H2 of FY18, and is in line with the board's expectations."

Review of Bonmarché’s preliminary annual results

Online sales grew by 34.5 percent, while like-for-like sales declined by 4.5 percent. There was a net increase in sales of 2.1 million pounds (2.7 million dollars) due to new selling space, and total sales therefore decreased by 0.5 percent compared to the equivalent 52 week period in FY17. Online sales participation increased to 9.5 percent from the 7 percent of FY17.

The company added that store sales were disappointing overall, but the performance was not even throughout the year. The store LFL was strong during Q1 and during September, leading to a strong H1 growth compared to the previous year, but store sales weakened significantly in H2, with October, December and March being especially poor.

The statutory basic earnings per share for the year were 13.1 pence, while underlying basic earnings per share (before charging exceptional costs) were also 13.1 pence compared to 10.1 pence last year.

Bonmarché declares 8.5 percent rise in full year dividend

The company further said that group's financial position remains sound, and the board is recommending a final dividend of 5.25 pence per share in respect of FY18, making total dividends for the year 7.75 pence per share. This represents an increase of 8.5 percent in the full year dividend.

Bonmarché added that trading since the beginning of the new financial year has been in line with the board's expectations. The financial position of the business continues to be sound, with no net debt, and the robust balance sheet provides a stable platform for the future.

Picture credit:Bonmarché via FTI Consulting