Homebase returns to profit
Homebase made a return to profit ahead of plan in 2019 with an EBITDA profit of £3.2 million compared with a loss of £114.5 million in the previous year.
Like-for-like sales rose by 2.6% as customers responded well to new ranges and improvements to both the in-store and online shopping experience.
In addition, the company reduced its cost base by over £180 million.
During the year, Homebase refreshed and expanded its product ranges in the home furniture, decorating, kitchens and garden categoris and also invested in new products and services.
The company said its acquisition of Bathstore has significantly enhanced its range and offer. It now has 49 Bathstore concessions operating in Homebase stores.
Damian McGloughlin, chief executive of Homebase, said: “Eighteen months into our turnaround, we’re extremely proud of what our team has achieved, working hard with our partners to return to profit and lay solid foundations for growth.
“We have a very clear vision for Homebase, and we’re excited about the plans we have for the future. We will continue to invest in our ranges, services, and team members as we make Homebase the go to place for the inspiration, expertise and products customers need to take their ideas and create homes they love.”
The company’s plans for 2020 include expanding its product range to to enable it to become a single destination for home and garden projects. It is also planning to trial two small standalone stores in Cheadle and Sutton which will be called Decorate by Homebase.
Andy Coleman, chief financial officer of Homebase, said: In the last 12-months we’ve removed over £180 million of cost from Homebase, as well as investing to create the right foundation for growth. Having returned to profit ahead of plan, we are very well set to undertake further investment in our stores, ranges, the online business and our teams.”
“Customer response to the changes we’re making is extremely encouraging, and 2020 will be a very exciting year for our team and customers.”
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