Matalan total revenue up for full year to end of February 2020

Value focused retailer, Matalan has reported a total revenue of £1,129.4 million in the full year to 29 February, rising 2.3% from the £103.9 million attained the previous year.

The company said it was pleased to have grown its sales and market share over the last year, highlighting online growth was up 24%.

Matalan added that a challenging market combined with political uncertainty and competitive discounting, along with profitability coming “under pressure” for the group in order to remain competitive with other contenders.

During lockdown, Matalan said it had introduced a new £25 million credit facility through the Coronavirus Large Business Interruption Loan Scheme.

In addition the retailer secured £25 million from the issuance of new senior secured notes, and subordinated a £50 million principal amount of existing second lien notes.

Chief executive Jason Hargreaves said: “Our business model has proven well positioned to adapt, with a rapidly growing and profitable online channel, and an estate of predominantly large out of town stores where social distancing protocols have been well implemented."

“Whilst it is still early in the recovery phase, we are very clear on the key areas the business needs to deliver on in the months ahead. These include accelerating the review and rationalisation of our supply chain to improve efficiencies and create more agility.”

Jason Hargreaves highlighted that the retailer is now completing online orders from 75 of its stores, including distribution centres.

Recently it was reported that Matalan is raising a £29 million cash injection through the sale of its Liverpool headquarters, as it seeks new options due to the Covid-19 pandemic.