Published on 26 - October - 2009
Focus moves closer to break-evenFocus, Britain's fourth largest retail DIY chain, took a step closer back towards break-even – and perhaps towards profitability – in the year to February 22, according to latest results filed at Companies House.
The combined accounts for Focus (DIY) Ltd and Do It All Ltd show turnover down 7% at £501.9m (£540.6m). But this compares the full 52 weeks to February 22 this year with the 43 weeks to February 24 2008, which did not include Easter 2007 or the early spring bank holiday. So the true like-for-like sales downturn is much greater than 7%, and almost certainly in double figures.
Elsewhere, though, the accounts reveal real progress in managing the chain back towards profitability. Staff numbers were reduced from 7,214 to 5,013 – a savage reduction of 31%. But the salary bill fell by only 12%, suggesting that the bulk of staff lost may have been lower-paid part-timers. The total salary bill was reduced from 14.4% of turnover to 13.7%.
Stock level at year end was cut from £116.8m to £91.2m, and stockturn rose from 3.4 times to 4.0 times as a result. Gross margin improved from 26.7% to 28.0% and the operating loss was reduced again, with operating margin at 1.8% negative. To put that into context, a year ago the figure was 6.4% negative, and the year before that it was 15.8% negative.
DIYWeek.net does not edit comments which are submitted directly by our users to express their own views. Please report abuse of our comment system here.
© Datateam Business Media Limited 2009. DIY Week.net news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.