Bonmarché full-year profits soar as it rolls out garden centre concessions

Excluding exceptional items, pre-tax profit rocketed from £6.1m to £11.2m over the year to March 29. Bonmarche was valued at £100m when it floated last year.

Like-for-likes surged 10.4% while total sales advanced 11.9% to £164.3m. Online sales soared 84% during the financial year.

The retailer began a trial of garden centre concessions over the year with a third party. Butterwick said it had been “very encouraged” with initial sales and has started a “significant roll out programme”.

Bonmarché, which targets an older clientele, said it had increased its women’s value sector market share by 14% from 2.8% to 3.2%.

Bonmarché chief executive Beth Butterwick said: “I am pleased with the strong financial performance in the period since the IPO. Full-year 2014 was the first full year of implementing our new business plan and we have made good progress in each of our key strategic areas: product, multichannel, stores and our service proposition.

“We are confident that the successful execution of our forward growth strategy, combined with our established position as one of the largest pure-play value retailers dedicated to women over 50, will enable us to continue building on our appeal and accessibility to these customers and, in turn, deliver value for our shareholders.”

The retailer said it had made product and price enhancements over the year. It had built “back the sales gaps” in categories such as coats, blouses and skirts with sales increasing £2.4m in these departments.

It has also developed categories where its mix is lower than the average for the market, such as dresses, tops and accessories. These departments increased their sales by £4.3m and their share by 2.6% over the year.

On pricing, it continued to develop its ’first price, right price’ stance which it said had improved sales by £6m in its core depratments over the year. Bonmarché has also developed coat and dress ranges to achieve an increase in exit prices of up to 5%.