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Bonmarché posts rise in H1 sales and profit

By Prachi Singh

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Bonmarché has announced that the results for the first half of the FY18 financial year showed an improvement compared with the corresponding period last year, with underlying PBT increasing to 4.2million pounds (5.5 million dollars) from 2.5 million pounds (3.3 million dollars) and the PBT margin increasing to 4.3 percent from 2.6 percent. The company’s revenue increased by 5 percent to 117.3 million pounds (155 million dollars) and combined like-for-like and online sales growth was 4.3 percent.

Commenting on the first half trading, Helen Connolly, Chief Executive of Bonmarché, said in a statement: "I am satisfied with the progress made during the first half of the financial year. We are only at the beginning of the journey in some areas of our strategy and there is a strong plan to support future growth. I do not expect the clothing market to become any less challenging in the near future, and therefore remain focussed on continuing to grow by profitably gaining market share."

Online sales rose 38.6 percent in H1

Store only LFL increased by 1.6 percent, and online sales by 38.6 percent. The company said that there has been a 1.4 percent increase in retail space since September 24, 2016, which accounted for the remainder of the revenue growth.

Bonmarché opened five new stores during the period, of which three were relocations of existing stores. The company also closed seven garden centre/concession sites at their natural lease breaks, so overall store numbers fell by five.

Bonmarché reveals cautious outlook

“We continue to face considerable uncertainty as to future market conditions, particularly in the near term, in relation to how the rest of the high street will approach discounting around Black Friday and the subsequent weeks. It has been widely reported that October was a difficult month for the clothing retail sector, and we were not immune from this; nevertheless, the group's PBT for the 52 week period is anticipated be in line with the Board's expectations,” added Connolly.

The company’s board declared an interim dividend of 2.5p per ordinary share, payable on January 22, 2018 to shareholders on the register on December 15, 2017.

Bonmarche