Moss Bros posts 30 percent rise in H1 profit

Profit before tax from continuing operations for the six months to July 30, 2016 at Moss Bros was 3.7 million pounds (4.8 million dollars), a 30 percent increase on last year due to strong like for like sales and margin growth. Trading in the eight weeks to September 24, 2016 has witnessed like for like sales growth of 3.7 percent.

Commenting on the results and outlook, Brian Brick, Chief Executive Officer of the company said, “The half year under review was another period of strong progress for the company. The Group’s financial performance continues positively and in line with the board’s expectations for the outturn for the year. We are profitable, cash generative and have a strong balance sheet and given our confidence in our performance, we are declaring an interim dividend of 1.91 pence per share, in line with our progressive dividend policy.”

Reports positive first half performance

The company said, business performed well in the first half with strong increases in retail gross margin rates, as a result of ongoing reductions in the level of discounting, particularly the removal of the mid-season sale, facilitated by strong first quarter performance. Total revenue increased by 4.1 percent to 63.8 million pounds (82.8 million dollars) and like for like retail sales increased by 5.3 percent. Moss Bros Hire like for like sales increased 2.8 percent. Across the Group like for like sales were up 4.9 percent in the first half.

The refit programme to modernise the Moss Bros store portfolio continues. Seven stores were refitted in the 26 weeks and a further nine stores are scheduled to be refitted in the second half of the financial year. 89 new and refitted stores now trade in the new format. The company opened three new stores; on Teesside, in Belfast and in Newbury and relocated the Hatfield store to a larger, better positioned location. Two non-core stores were closed during the first half. Moss Bros currently trades from 125 stores.

Like for like hire sales were up on 2015 levels by 2.8 percent, while e-commerce sales were up 9 percent on the previous year. Overall online sales now comprise 10.3 percent of total Group revenue. The company’s two store pilot in the Middle East is now live with one unit being a mall store and the other a concession unit.

Picture:Moss Bros