Maplin losses widen after “transformational” year

Maplin update

A “transformational and challenging year” for Maplin has seen its pre-tax losses widen despite an increase in sales.

According to accounts recently filed at Companies House, Maplin recorded a pre-tax loss of £3.9 million for the year ending March 31, 2017, up from £2.1 million in the year prior.

Meanwhile, EBITDA came in at £8.9 million, down from £12.7 million the year before.

However, Maplin’s sales rose from £234.6 million to £235.8 million in the year ending March 2017, while online sales increased by 19.4 per cent and now account for 15.7 per cent of the total.

The technology retailer said 2016/17 was a “transformational and challenging year” for the business, with progress made on the group’s three-year 2020 Vision strategy.

The strategy included the launch of trial “store of the future” in Cambridge that will be the blueprint for future store execution, and one-off costs from that store’s development as well as the reorganisation of the retailer’s support centres and rollout of a new brand identity.

Maplin also moved its commercial and marketing functions from Rotherham to its London office, a move that led to the recruitment of a further 60 staff.

At year’s end, the technology retailer had over 200 stores across the UK.

“Against a backdrop of footfall decline on the high street, this was a credible performance in a year when consumer confidence decreased following the Brexit vote,” the retailer said.

It added: “Notwithstanding the progress made on our strategic initiatives in financial year 2017 and in financial year 2018 to date, the board remains mindful of the challenging trading environment in which the group operates particularly with regard to consumer confidence which, in common with the marketplace, has seen pressure on like-for-like sales within our business, the impact sterling’s post Brexit devaluation has had on cost of goods and also the regulatory impact on our overhead base.”

Last week, it was revealed Maplin chief executive Oliver Meakin had resigned to take up a similar position with the Gaucho Group restaurant chain.

Maplin has not yet revealed who would replace him.

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