Matalan reports a significant reduction in pre-tax losses despite a drop in sales.
- The retailer saw a 44% reduction in pre-tax loss, now standing at £60m.
- Improved EBITDA by 92% to £53m was driven by cost controls and operational improvements.
- Revenue dropped by 6% due to strategic decisions and challenging market conditions.
- Matalan has strengthened its foundations with a new leadership team amidst transformation efforts.
Matalan, despite a 6% dip in revenue, has reported a noteworthy reduction in pre-tax losses by 44%, bringing it down to £60 million for the year ending 24 February 2024. This financial result marks a significant improvement from the previous year’s £106 million loss.
The company attributes this reduction in losses primarily to an improved EBITDA, which rose by 92% to £53 million. This improvement was largely driven by enhanced gross margins and stringent cost control measures, alongside operational advancements.
Matalan’s revenue decline is linked to strategic decisions made in response to challenging market conditions. The company’s focus on enhancing product margins, decreasing levels of discounting, and promoting full-price sales facilitated an 8% enhancement in the gross margin, now at £495 million.
Furthermore, Matalan’s financial health is underscored by its closing unrestricted cash position of £123 million, reflecting improved liquidity through EBITDA growth and stricter stock management.
Under the leadership of Jo Whitfield, the CEO, Matalan has embarked on a transformation journey. With a fresh executive team, the company is striving to strengthen its foundational operations against a challenging market backdrop. Initiatives have been launched to elevate both online and in-store performance.
Matalan’s strategic actions have yielded significant progress in reducing losses despite the ongoing revenue and market challenges.
