Matalan has posted an increase in both sales and profits as the business recovered from the impacts of the pandemic.
The fashion retailer recorded EBITDA up 145% year on year to £198m in the 52-week period to February 26.
Sales also jumped 38% to £1.02bn over the same period as shoppers returned to stores.
Matalan added that sales for the 13 weeks to May 28 were also up 29% to £287m.
The retailer has agreed a refinancing of the near-term July 2022 maturities relating to the Covid-19 large business loan scheme and its revolving credit facility – both of which will be repaid at maturity in July – and will be replaced by a new £60m loan facility for up to 18 months.
Matalan has also made headway on its digital transformation, with plans to migrate on to the THG Ingenuity platform in spring 2023.
Matalan executive chair Steve Johnson said: “The results published today for the year to February 2022 represent a strong recovery during what remained a period of ongoing challenges, including mandated store closures and the continuation of worldwide supply chain disruption as a result of the Covid-19 pandemic.
“Despite these obstacles, and assisted by the support packages provided by the government, we significantly improved our level of performance and profitability in what remain demanding circumstances for both our sector and consumers more broadly.
“Throughout the last year, our large and spacious out-of-town stores with free parking remained safe and appealing destinations for customers, with the two newly opened stores also performing well.
“Our stores complement what is now a significantly scaled online business, having grown its turnover by over 50% since the beginning of the pandemic, with lots more potential still to realise. Together, they provide our customers with convenient and flexible access to the great quality and value ranges that they trust and rely on, now more than ever.
“The spring 2022 market has remained volatile, hampered by widespread inbound supply disruption and weak consumer sentiment in the face of the spike in inflationary pressure on broader consumer spending. Against that backdrop we remain well-positioned, offering outstanding value to our customers, which has shown through in our sales performance.
“Particularly pleasing has been the positive response to the new in-house developed brands launched in March 2022, Et Vous and Be Beau, within womenswear. With fantastic prints, great designs and the excellent value we are famous for, they have performed extremely well, both online and in stores.
“Such strong customer reactions give us the confidence that as our stock flow continues to normalise in the months ahead, we are well placed to capitalise on our market positioning in supporting our customers through these challenging times.”
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