ElectricalHigh Street

Brighthouse reports £16m loss

Brighthouse has reported a £16m loss in its financial quarter to 28 September 2019.

The rent-to-own retailer made a loss of £16m for its second quarter compared with £11m for the same period in 2018.

EBITDA loss for the quarter was £3.2m compared with £1m last year.

During the period, the retailer took out a £5.6m provision for in order to cover customer claims and complaints received.

Brighthouse stated in the report: “We have continued to receive affordability claims from customers which we are required to investigate and, if it is found that the correct procedures have not been followed, reimburse them accordingly. 

“The volume of complaints received have been higher than we forecasted and therefore our provision for affordability claims has increased by £5.6m to £12.6m.”

In October 2017, it was reported Brightouse was to pay £14.8m in compensation to 250,000 customers due to irresponsible dealings by the Financial Conduct Authority. 

Back in February last year, Brighthouse announced it was to close 30 stores, resulting in 350 jobs being put at risk. It now operates from 245 stores compared to 281 in 2018.

Back to top button