Office hit by takeover costs, stays upbeat despite tough environment
Office Holdings, the company that operates the Office and Offspring footwear chains, saw sales soaring in its latest financial year. But the figures weren’t quite as good as they looked as its fiscal year was extended by an extra 22 weeks due to it being taken over.
And the firm said in a Companies House filing that its profits plunged as costs linked to that £256m takeover by South Africa-based Truworths weighed on the results.
Despite “continued tough trading conditions”, sales in the 74 weeks to June 26 last year were £387.4m, compared to £272.2m in the 52 weeks to January 25 2015. While it did not give a 52-week comparison, sales seem to have been fairly stable.
Profits on an Ebitda basis were £37.6m in the 74 weeks and were hurt by those transaction costs. It did not say how much those costs added up to. The profits fell from £62.7m in the prior 52-week period, although the previous fiscal year’s profits had included a boost from a VAT refund of £25.2m.
The company said the outlook for the year ahead is expected to remain “highly competitive” but the business retailer “remains a well funded and cash generative business and continues the expansion of its integrated multi-channel business.”
Office currently has 115 stores, mainly located in the UK, Ireland and Germany, as well as concessions in a number of stores including House of Fraser, Arcadia’s Topshop and Topman and innSelfridges. It also has a buoyant e-commerce operation.
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