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Moss Bros reveals 5.7 percent rise in FY16 revenues

By Prachi Singh

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Business

In its preliminary results announcement for the year to January 28, 2017, Moss Bros Group reported that total revenue, excluding VAT, was up 5.7 percent on the previous year to 127.9 million pounds (158 million dollars). Group like-for-like sales of 131.5 million pounds (163 million dollars), including VAT, were up 5.3 percent.

Commenting on the results and outlook, Brian Brick, Chief Executive Officer, said in a media release, “We are very pleased with the performance of Moss Bros, as we made good progress towards the achievement of our strategic goals. The early response to the 2017 Spring/Summer retail range has been positive and retail like-for-like sales are continuing to improve. The group’s trading performance continues in line with the board’s expectations.”

Financial highlights of the fiscal year

Like-for-like retail sales were up 6 percent compared to 7.6 percent last year, while like-for-like hire sales, representing 13.7 percent of sales, were up 1.5 percent compared to 11.7 percent last year. E-commerce sales including VAT rose 15.7 percent on 36.3 percent rise reported in 2015/16, which are now 11 percent of total sales.

Profit before tax was up 20.3 percent at 7.1 million pounds (8.8 million dollars) and EBITDA improved 8.8 percent to 13.6 million pounds (16.8 million dollars), which the company said was driven by improved sales, more targeted discounting and tight control of costs. Gross margin improved by 1.5 percent to 61.3 percent, due to lower levels of discounting. Basic earnings per share of 5.51 pence, were up 17 percent.

Proposes 6.1 percent rise in annual dividend

The company’s board has proposed final dividend of 3.98 pence and total dividend for the year 5.89 pence, up 6.1 percent on the previous year.

The company said, retail like-for-like sales, including VAT, in the first 7 weeks of the new financial year are up 4.3 percent but Easter, which marks the start of the wedding season, falls 3 weeks later in 2017, temporarily delaying some hire order collections and therefore revenues by three weeks. Hire orders booked for collection in 2017/18 are currently down 1 percent on the previous year and hire like for like, reported on a ‘cash taken’ basis, is down 14.3 percent in the first 7 weeks, due to the implementation of the company’s “£10 deposit” offer in store.

Picture:Facebook/Moss Bros

Moss Bros