Moss Bros reports rise in annual profit, like-for-like sales up 8.2 percent

Moss Bros reported improvement across business in 2015/16 with strong like-for-like sales growth and continued control over costs. Underlying profit before taxation on continuing operations was 5.9 million pounds (8.3 million dollars), compared with a profit of 4.8 million pounds (6.8 million dollars) in the previous year, representing an increase of 23.1 percent.

Commenting on the results and outlook, Brian Brick, Chief Executive Officer, said, “We continue to make strong progress in the delivery of our strategic priorities. The modernisation of the store portfolio, which is nearing completion, is achieving the anticipated returns and we have well developed plans for the implementation of our multi-channel shopping environment. We have added to the strength of the management team and we are well placed to take advantage of these opportunities to accelerate our growth.”

Financial highlights of the year

Overall revenue was up 5.5 percent, up 8.2 percent like-for-like, on the previous year to 121.1million pounds (172.1 million dollars). Retail was up 5.5 percent and up 7.6 percent on like-for-like basis on the previous year. Hire was up 5.6 percent and increased 11.7 percent like-for-like on the previous year.

Underlying overall gross margin increased by 1.5 percent in the year to 59.8 percent against 58.3 percent, due to more targeted promotional campaigns leading to lower levels of discounting.

Given the strong progress made in 2015/16 and ongoing cash generation the Board has proposed the payment of a final dividend of 3.75 pence per share bringing the total for the year to 5.55 pence per share, compared with 5.25 pence per share for the year ended January 31, 2015, an increase of 5.7 percent.

Major developments during the fiscal

The company accelerated the store refit programme during the year and 81 stores now trade in the new store format. The company also continued the development of the organisation and its talent by recruiting a People Director, Sara Gomez, early in the financial year and subsequently a Chief Operating Officer, Paula Minowa, to accelerate the development of its multichannel and international aspirations.

In September 2015, Robin Piggott, the Group’s finance director announced his intention to retire from the Board at the company’s AGM in May 2016. Tony Bennett will now join as Group Finance Director by August 2016. He joins from Charles Tyrwhitt, the multichannel menswear retailer. He has a deep commercial background in online, multi-site and international consumer businesses, with relevant experience in menswear.