Nisa full-year profits rise despite sales dip

The convenience specialist posted a 17.8% rise in EBITDA to £8.6m in the 52 weeks to April 2, while pre-tax profit increased to £2.8m, up £600,000 from the previous year.

Nisa’s sales fell 2.6% to £1.3bn during the period, although Nisa said sales were up 3.8% “when adjusting for the movements in large accounts” such as the loss of the My Local store chain and subsequent contract to supply the 298 convenience outlets that McColls acquired from the Co-op.

Nisa’s bricks-and-mortar footprint now comprises 515 stores, up from 476 the previous year and the retailer continued to cut its distribution and overhead costs, down 0.7% and 4.1% respectively.

Sales in the nine weeks since Nisa’s full-year period increased 7% year-on-year.

‘Performance uplift’

Chief executive Nick Read said: “The uplift in performance throughout FY17 continued to build on the foundations laid in FY16 when Nisa returned to profitable growth.

“It has also helped us to convey a message of long-term sustainability, key to securing the confidence of our banking partners in our recent refinancing discussions. The business now has the security of a £120m facility for a period extending to five years, the terms of which are more favourable than our previous facility.

“Nisa is well placed to continue the execution of its three-year strategy, to grow profitably and create a sustainable business model for the benefit of all its members.”