Moss Bros like-for-like retail sales up 4.1% in FY'13

25 Mar '13

2 min read

Moss Bros Group PLC, the ‘UK’s No 1 Men’s Formalwear Specialist’, announces its Preliminary Results, covering the period from 29 January 2012 to 26 January 2013.

The Group’s performance continues in line with market expectations. Although mindful of the fragile economy, the business is on course to deliver further growth.

Financial

• Group like-for-like sales, including VAT, up 3.9% (2011/12: up 12.5%)

- Like-for-like retail sales up 4.1%

- Like-for-like hire sales up 3.1%

• Pre-tax profit before exceptional items at £3.0m, an increase of £2.1m on the prior year.

• EBITDA of £7.9m (2011/12: EBITDA of £5.8m), driven by improved sales and tight control over costs.

• Underlying gross margin significantly improved in the second half to be only 0.2% below last year (59.5% vs. 59.7%), despite raw material cost price pressures.

• Strong cash balance of £25.7m (2011/12: £23.3m).

• Exceptional credit of £0.1m comprising compulsory purchase compensation of £1.5m offset by an additional provision of £1.4m against loss-making stores.

• Basic earnings per share, on continuing operations of 2.43 pence (2011/12: 1.63 pence per share). Basic earnings per share, on continuing operations, before exceptional items, of 2.24 pence per share (2011/12: 1.63 pence per share).

• Final dividend of 0.7p, total dividend for the year 0.9p, up 125% on the previous year. (2011/12: 0.4p)

Commenting on the results and outlook, Brian Brick, Chief Executive Officer, said:

“We continue to make good progress and to bring momentum to the growth in profit in spite of tough trading conditions. During 2013/14 we will continue the roll-out of the store development programme and the development of our e-commerce multi-channel offering. In parallel, we will undertake a customer insight project, to develop a clearer brand proposition for the business, enabling us to target customers in a more defined way. Further opportunities for growth are well supported by our strong balance sheet.

“The operational trends in the business are moving in the right direction and, although trading in the first seven weeks of 2013/14 is slightly below last year’s levels, we remain confident that the business will continue to make good progress in 2013/14 and meet market expectations. As a reflection of the Board’s confidence in the business, I am pleased to report that the Board will be recommending to its shareholders the payment of a significantly increased final dividend of 0.7p per share (2011/12: 0.4p), a total of 0.9p per share (2011/12: 0.4p).”

Moss Bros Group PLC

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