Paperchase EBITDA up 33% as owner rules out sale of the business
Stationery retailer Paperchase has announced that pre-exceptional EBITDA rose by more than 33% to £9.6 million in its last financial year.
Total sales grew by 7% to £128 million while online sales climbed by 42%.
Timothy Melgund, Paperchase chief executive, said: “We’re pleased with these results. They reflect the hard work we have put into making Paperchase stand out on the high street. The economic environment and retail market remain challenging but our results prove that Paperchase is very well-positioned as we continue our investment programme.”
Paperchase has doubled its number of UK stores to 125 since it was acquired by Primary Capital and management five years ago. In addition, it has expanded its international presence with new concessions in France, Germany and the Netherlands, and launched Paperchase products in 1,200 Staples stores in the US.
The company is also in the process of opening concessions in Hudson’s Bay stores in Canada.
During the last year, Paperchase has opened 10 UK standalone stores.
Commenting on current trading, Melgund said: “Trading so far this year has also been encouraging with strong like-for-like sales growth both in the UK and overseas and we’re delighted with customer reaction to our new ‘Treat Me’ reward card programme. These are exciting times for the Paperchase brand.”
Primary Capital has ruled out a sale of Paperchase after receiving a number of expressions of interest for the business from both UK and international buyers.
In the statement issued today, Primary Capital said: “Having reviewed several offers, Primary and management have concluded that they do not properly reflect the full potential of the business. Primary remains committed to backing Paperchase’s management team to continue expanding the business both in the UK and internationally.”
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