Beales posts £1.2m loss
It described the performance as “disappointing”, with like-for-like sales down by 9.2% in the 26 weeks to April 30, but pointed out that losses were inflated by its acquisition of 19 stores from the Anglia Regional Co-operative Society.
Sales were hit by the Arctic weather over the key Christmas period and January’s rise in VAT to 20% from 17.5%. They also suffered because it did not repeat ‘mega day’ 25%-off sales from the previous April, as it looked to boost its gross profit margins.
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Hide AdHowever, revenues increased 4% to £27.3 million in the period, after it benefited from opening two new stores, in Hexham in Northumberland, and Rochdale.
Beales posted pre-tax losses of £1.2 million, compared to profits of £900,000 a year earlier.
The slide into a loss was mainly caused by £1.3 million of charges after buying the new stores, but nonetheless the performance was disappointing, it added.
Its 19 new stores, which mainly traded under the Westgate name, are scattered across the country, in locations including Bishop Auckland, Chipping Norton, Diss, Harrogate, Mansfield, Peterborough, Redcar and Saffron Walden.
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Hide AdThe group said the recent acquisition was essential to help it to return to profit by increasing its scale. Chairman Mike Killingley said there was also significant scope to improve the outlets.
Other stores in the group include Broadbents & Boothroyds of Southport, Denners of Yeovil, Robbs of Hexham and Whitakers of Bolton.