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Clintons has returned to profit following a period of store closures and job losses, with pre-tax profits rising to £8.1m in the year ended 29 June 2024, up from a loss of £5.4m the prior year.
Full-year sales fell from £96.5m to £82.6m over the period, which was a “satisfactory performance, given the circumstances”, according to the group’s directors.
It comes as the company has continued to close loss making stores, with its store portfolio now down to 170 sites, whilst its headcount was cut from 1,757 to 1,415 over the year.
During the year the company was acquired by Pillarbox Designs Limited, the parent company of Cardzone. Following this, “significant changes have been made that are helping to move the business forward on the desired trajectory towards a sustainable EBITDA”.
In a statement filed on Companies House, the retailer said sales growth “continues to be a challenge” and the location of stores “remains key” to achieving this.
In its latest accounts, its directors said: “The high street continues to be unpredictable, and the company is seeing reduced footfall in the stores year on year. The company continues to monitor performance of the existing estate and to close the poor performing stores, which whilst impacting on turnover should improve profitability moving forwards.
“Like many other retailers, the company continues to face significant cost pressure on wages given the increases in the national minimum wage. Conversely, energy costs for the business began to ease during the year with the deal in October 2023 representing a material saving compared to the deal for the prior year.”
They added: “The company is constantly looking for ways to increase efficiency to mitigate the impact of any cost pressures and to drive store profitability.”
In 2023, Clintons underwent a restructuring plan with the help of FRP Advisory to “enable the business to continue its transformation and avoid insolvency”.
At the time, trading had been hit by “changing consumer behaviour, increased online competition, the impact of the Covid-19 pandemic, inflationary pressures and increasing rents and business rates”.
