M&Co beating the blues on the high street

clothing chain M&Co is to open six stores this year taking its tally above 300 after parent company Mackays Stores Group reported a 3 per cent rise in like-for-like sales.

The new stores will be south of the Border and represent steady expansion of the chain in a tough high street.

The company said in newly-filed accounts that growth had been achieved “despite a significant reduction in consumer demand over the last two months of the financial year caused by uncertainties in the economy, price rises across all sectors due to increases in raw material costs, and the higher rate of VAT”.

Margins remained stable while overhead costs had been contained.

The group traded from 12 new sites during the year, two of which were relocations. Four unprofitable stores were closed.

Operating profit before goodwill and share scheme charges edged up from £15.1 million to £15.6m in the year to the end of February. Profit before tax rose from £10.4m to £11.5m on a 6 per cent rise in turnover to £186.9m. The highest-paid director Ian McGeoch saw his pay package fall from £551,646 to £500,620. The company restored its dividend with a payment of £1.95m.