Matalan sees positive full-year growth

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Matalan has reported growing sales in its yearly results outperforming its larger department store rivals following its refinancing earlier this year.

In the year to February 24, Matalan saw total revenues jump 1.9 per cent to £1.06 billion, while underlying pre-tax earnings jumped 36 per cent to £104.5 million.

This was largely driven by a boost in full-price sales as the retailer moves away from discounting, rising 11.7 per cent during the period.

Online sales also helped the overall performance, rising 30 per cent.

In January, Matalan refinanced its debt pile through a £330 million offering of secured notes due in 2023, alongside a second tranche of £150 million due a year later.

Its positive performance comes at a torrid time for high street retailers, with House of Fraser, Marks & Spencer, Mothercare and New Look all experiencing financial difficulties.

Unlike its more upmarket rivals, Matalan is understood to have benefited from a fall in consumer confidence as shoppers seek out bargains.

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