Fashion retailer Moss Bros has managed to cut pre-tax losses by over £1 million in its last financial year, it was revealed today.
Retail sales rose by 8.9 per cent on a like-for-like (LFL) basis in the 52 weeks to January 31st 2011, compared to the same period the previous year, and LFL group sales were up by 9.1 per cent.
This healthy performance helped reduce pre-tax losses to £2.7 million for the year compared to £3.2 million in 2010.
Brian Brick, CEO of Moss Bros, said: “We have made good progress on all of the operational priorities we set out at the beginning of the year and this has had a very positive impact on trading, despite the difficult trading environment last year.
“We continue to build clear strategic goals, an effective management team and a track record of delivering.”
Despite total gross margin falling 0.5 per cent in the first half, over the full-year it was up 0.3 per cent to total 55.4 per cent.
During the year many operational changes were implemented by Moss Bros to help reinvigorate the brand, including the restructuring of the executive management team and the disposal of the Hugo Boss franchise business for a consideration of £16.5 million.
A new concept store is due to be unveiled at Canary Wharf, London in May of this year, and the new Moss Bespoke concept has already been piloted in stores.
Brick continued: “Current trading reflects strong LFL growth and our continued focus on the operational priorities, with the support of our strong balance sheet, gives me great confidence that we will fully achieve the potential for this business.”
EBITDA before exceptional items finished at £3.8 million, the business has a cash balance of £6.9 million and net cash inflow of £600,000.
Consistent with last year the retailer’s board has decided not to propose a final dividend.