Homebase Posts EBITDA Of £61m

Homebase has published its annual report and financial statements for the year ended 27th December 2020, advising of EBITDA profit before exceptionals of £61m, compared with a figure of £4.1m in 2019.

In a document filed at Companies House, Homebase states, "This result marks the conclusion of the management team's turnaround strategy that started in June 2018, and the beginning of a three-year growth plan".

A summary of key points from the publication follows:

• Turnover of £738.1m compared with £775.8m in 2019 (-4.1%). 
  
  
• Like-for-like sales increased by 11.3%, "...reflecting the very positive response to the new ranges and improvements in shopkeeping".
  
  
• Gross margin improved by 2.6%, "...as customers continued to respond well to new ranges... and improvement to both in-store and online shopping experiences".
  
  
• The year ended with 135 stores trading (compared with 146 in 2019), "...with all stores profitable at a contribution profit level".
  
  
• Homebase did not take government loans available as part of the COVID-19 pandemic support measures but did access Job Retention Scheme funding, business rates relief and deferred VAT payments, "...which helped offset the significant impact and losses from the temporary closure of all Homebase stores during the peak trading period." 
  
  
• The CVA was concluded in June 2020 and a potential sale process was initiated towards the end of the year. The company stated, "Should a suitable partner not be found, Homebase will continue on its current growth path with the existing owners".

Highlights

• 2020 saw the launch of more than 5,500 new products.
  
  
• New partnerships and product launches included Country Living and House Beautiful kitchens, furnishings and garden structures.
  
  
• A new partnership was established with The Hut Group, to, "...revolutionise the online offer for customers and set the Company up for growth online".
  
  
• In 2020, two new-format high street stores opened under the 'Decorate by Homebase' fascia, along with a 'Homebase Kitchens and Bathstore' store.
  
  
• Seven stores were 'right-sized' and refurbished and several 'shop-within-a-shop' formats covering storage, home and decorating, were rolled out.  
  
  
• Bathstore inserts were fitted within 104 Homebase stores by the end of the reporting period.

2021 Plans

• January and February closures have impacted kitchen and bathroom sales; conversion noted to be slower with virtual appointments.
  
  
• Homebase intends to continue to expand its product range, "...with leading brand partnerships to be a single destination for home and garden products".
  
  
• New stores, including further new-format stores will open during the reporting period.
  
  
• The company intends to "transform the digital offer for customers" and says it will continue to enhance customer service. 

Source : Insight DIY Team

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