The Entertainer owner Teal Group posted record annual sales of £315 million, but pre-tax losses widened to £19 million as costs mounted.
Sales rose 10 per cent from £286.6 million in the year to January 31, 2026. Pre-tax losses increased from £10.1 million, while operating losses doubled to £16.8 million. Adjusted EBITDA stood at £2.9 million.
The group blamed higher employment costs, business rates, depreciation and exceptional charges, including its move to employee ownership.
It also incurred £5.4 million in one-off costs establishing its largest retail partnership.
Trading strengthened after the year end, with like-for-like sales at The Entertainer’s own stores rising 22 per cent in the first half and sales across all channels increasing 13 per cent.
The improvement followed the Grant family’s transfer of ownership to an employee ownership trust in September 2025, enabling Sunday opening and broader product ranges.
Teal also invested £5 million in lower prices and restructured to remove £10 million from operating costs from 2027/28.
The board expected profitability to improve significantly this year. Several store openings are planned for 2027, including at least three in the UK’s top 20 retail locations.
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