TOFS full-year sales fall but boss heralds CVA for improved profitability

The value retailer recorded EBITDA of £4.1m in the 52 weeks to March 31, 2019, down 34% year on year.

The business, which recorded a 13% decline in revenue year on year to £161m, won approval for its CVA during the financial period, resulting in the closure of 54 stores.

TOFS, which today operates 168 stores, said the business is “in a stronger and healthier position” as a result of its CVA and has doubled EBITDA in the first half of its current financial year.

The retailer recorded a 27% uplift in members of its loyalty scheme to 1.7m members.

The retailer has honed its clothing offer during the financial period as well as adding further FMCG categories such as grocery and pets, which it said has driven increased shopper visits and “weather-proofed” the retailer’s offer and led to “a strong upward trajectory” in like-for-like sales.

Chief executive Emma Fox said: “This has been a challenging year, as anyone who has been through a CVA will know; however, our turnaround plan is more than on track and we have entered this financial year in a fundamentally healthier and stronger position. We have a unique position in the heart of local communities where savvy shoppers are looking for great value bargains.

“I want to thank the team for all their hard work and I look forward to the second half. I am confident that our strategy, led by a strong management team and our unique position in the value retail market will allow us to deliver the best for Britain’s bargain hunters in these cautious times.”