Revenues for rent-to-own retailer Brighthouse grew by 15.4 per cent in its full-year period, results revealed today.
Underlying EBITDA totalled £39.7 million in the 12 months to March 31st 2011, an improvement of 16.4 per cent, whilst operating profits grew from 24.8 million in 2010 to £33.6 million.
Business has been aided over the last year at the retailer, which offers alternative credit agreements, by families having less money to spend up front on big ticket items and traditional routes to credit becoming more difficult to secure.
On the back of this demand Brighthouse opened an additional 30 stores during the period, taking it to a total of 228, and it is already planning to another 30 new outlets this year.
Leo McKee, CEO of Brighthouse, said: “BrightHouse is going from strength to strength. With a proven customer proposition, we have grown from 141 stores in 2006/07, to 228 in 2010/11.
“Despite the travails of the high street, we continue to see customer demand for our products and services remain relatively buoyant.
“The current financial year has started in line with management expectations and we are working towards delivering another positive year.”
Supermarket chain Asda’s regular family spending power report showed a record decline in May, as disposable cash becomes more and more scarce for the average UK household.
Keen to defend its business model of serving credit and interest rates to lower income consumers, Brighthouse claims that currently 40 per cent of its new customers are referrals from existing shoppers at its stores.
To date the firm has more than 200,000 active shoppers throughout the UK and it points to independent research that has shown that 84 per cent of its customers would recommend the service to friends or family.
Now employing over 2,600 members of staff, Brighthouse is confident that its increase in stores can lead to further penetration into the market in the year ahead.
McKee added: “Our longer-term prospects are also good. We are a responsible lender, serving families in some of the most socially deprived areas of Britain.
“We understand their needs and they value the convenience of making weekly payments and the personal relationship they develop with their store manager.”