// Matalan total revenue up for full year to end of February 2020
// CEO Jason Hargreaves says business is “very clear on the key areas the business needs to deliver on in the months ahead”
Matalan’s total revenue came in at £1.12 billion in the full year to February 29, rising 2.3 per cent from the £103.9 million achieved the year before.
The value-focused retailer said it was pleased to have grown its sales and market share over the last year, noting online growth was up 24 per cent.
Matalan said a challenging consumer backdrop had been compounded by political uncertainty and competitive discounting, with profitability coming “under pressure” for the group in order to remain competitive with other retailers.
Speaking on the current trading issues of lockdown, Matalan said it had introduced a new £25 million credit facility through the Coronavirus Large Business Interruption Loan Scheme.
It has also secured £25 million from the issuance of new senior secured notes, and subordinated a £50 million principal amount of existing second lien notes.
“Our business model has proven well positioned to adapt, with a rapidly growing and profitable online channel, and an estate of predominantly large out of town stores where social distancing protocols have been well implemented,” chief executive Jason Hargreaves said.
“Whilst it is still early in the recovery phase, we are very clear on the key areas the business needs to deliver on in the months ahead.
“These include accelerating the review and rationalisation of our supply chain to improve efficiencies and create more agility.”
Hargreaves noted that Matalan is now fulfilling online orders from 75 of its stores, as well as distribution centres.
Earlier this month the Sunday Times reported that Matalan was seeking a £29 million cash injection through the sale of its headquarters, as it continues to find ways to navigate the coronavirus pandemic.
Based in Monaco, founder John Hargreaves was met with criticism at the time amid reports he was trying to avoid using his own funds to support the business.
Hargreaves said he would pump £25 million into the business if Matalan owes more than a combined £50 million through government loans and its revolving credit facility by the end of 2021.