Wilko Grows Turnover but Reports £65m Loss

Wilko has reported on trading for the 53 weeks ended 3rd February 2018.

In accounts filed with Companies House Wilko stated that in 2017/18, turnover grew from £1,513m to £1,620m, up 7.1% (5.3% on a 52 week comparable period) while pre-tax losses reached £65m.

EBITDA was £50.2m, up £1.3m on the previous year, although operating profit declined by £5m to £18m, reflecting continued investment in stores and IT infrastructure.

Chief Operating Officer Sean Toal said that the company had a 'strong underlying performance with like-for-like sales growth ahead of the market as a whole'. 

Online trading increased by 47% during the year and 20 new stores were opened, bringing the total to 415.

Wilko is establishing a strategy to take the business forward to its centenary in 2030, with a 'shift in emphasis away from reliance on traditional retailing and, over the next decade, increasing reliance on product and experience.'

In order to prepare the business, Wilko said that it had taken decisions that led to significant one-off charges which were classified as exceptional in its 2017/18 accounts.  These included the restructuring of the retail store operation to reduce the number of management levels within stores to create a more efficient operating structure; the closure of three stores and plans to close three more during 2018/19; and a change in transport provider.

Over half (£39.9m) of the loss was attributed to revaluing exchange forward contracts which allow the business to lock in a dollar rate to minimise the impact of currency fluctuations.

Wilko also stated that its operating profit had been significantly affected by stock loss and said that it had established a project to address this.

Source : Insight DIY Team

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