Homeware retailer Wilko has posted a profit before tax loss of £65m in its latest financial results to the year ending 3 February 2018.
The company said during the past year it had invested in excess of £60m in the business to capitalise on future growth.
Wilko’s operating profit was down £5m to £13m as a result of its continued investment in stores and IT operations. Its total loss for the financial year after tax was reported to be £55.7m.
During the financial year Wilko opened 20 new stores, increasing its portfolio to 416, and its like-for-like sales grew turnover by 7.1% to £1.6bn. The company said its website also “enjoyed a significant uplift in both visits and conversions” with a 47% growth in online business. Overall, it’s like-for-like sales rose for a third consecutive year, up 3.7%.
EBIDTA was £50.2m, up £1.3m compared with the previous year’s £48.9m.
The statement said the group’s operating profit was “significantly impacted” by a high level of stock loss and added a project was underway to reduce the level of stock loss.
Sean Toal, chief operating officer of Wilko, said: “Despite the tough trading environment, we have grown the business and won more customers as they are attracted to the quality and value of our offer. While we have taken some exceptionals during the year, the business is now set up to be in good shape as we undertake our new strategy for growth.
“We are excited about the new opportunities that lie ahead of us and look forward to bringing better value and better quality designed products to our customers.”