Matalan’s pandemic cost-cutting efforts returned the business to stable ground ahead of its sale last year, helping to provide a launchpad as it steps up its transformation plans under CEO Jo Whitfield.
The fashion and home retailer bounced back into the black when it was acquired by a group of investors at the start of last year, as it made a pre-tax profit of £255,500 in the 52 weeks to 25 February 2023, up from a loss of £2,500 the year before.
According to recent Companies House filings, the retailer said its board took “decisive actions” to manage the impact of Covid-19 on the business by significantly reducing costs and enhancing liquidity.
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These measures included reductions in stock commitment, renegotiating supplier payment terms, negotiating rent deferrals with store landlords and participating in the government’s business rates holiday, job retention scheme and HMRC time to pay arrangements.
The retailer said that since the ending of the Covid-19 related restrictions, the business has managed to unwind all the mitigating actions taken in response to the pandemic.
A Matalan spokesperson said the accounts are “historic” and “do not reflect the current Matalan business, under new ownership and leadership, which is focused on ensuring the business is on a much more solid footing”.
The retailer revealed last October its EBITDA came in at £47.9m in its second quarter, with sales up 0.8% to £288.6m, which it attributed to the improved profitability to its sales performance, tight control of markdown, effective cost management, and positive movements in input prices.
Matalan said it will report its full year results for the current trading period in June.
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