M&Co owner sews up swing to full-year profit

Retailer M&Co has achieved its best result in five years. Picture: Contributed
Retailer M&Co has achieved its best result in five years. Picture: Contributed
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The owner of clothing retailer M&Co said it has achieved its best result in five years, as it pursues the expansion of its branch network across the UK and internationally.

Mackays Stores Group swung to pre-tax profit of £1.5 million in the year ending 26 February, from a loss of £2.9m in the prior year.

Retailer M&Co has achieved its best result in five years. Picture: Contributed

Retailer M&Co has achieved its best result in five years. Picture: Contributed

The Renfrew-based firm, which in Scotland has 62 stores and 900 staff, said total sales jumped by 1.7 per cent with net turnover hitting £163.2m.

Chief executive Andy McGeoch said turnover increased both on a total and like-for-like basis.

He also noted that core earnings jumped by 57 per cent to £9.4m, and added: "Following an excellent spring/summer, the autumn/winter half was again more challenging due to some poor weather and the discount environment which prevailed on the high street in the run-up to Christmas."

Looking at the current financial year, he said the first-half results "show further progress in like-for-like sales and achievement of targeted profit levels despite increased cost pressures".

He added that a programme to refresh the appearance of its store portfolio is "well under way with over 80 of our stores now benefiting from these refits". The group also opened stores in two new towns with a further three shops launching in the autumn, and shuttered three non-profitable stores.

McGeoch added: “We are keen to further expand our store portfolio and are targeting ten new stores per year for the next five years as there are a number of towns in which we are currently unrepresented where we believe our format would be successful."

He also noted that M&Co, which was established in 1834 in Scotland and is now one of the largest privately-owned fashion retailers in the UK, now operates 25 international franchises stores in ten countries.

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