CEO claims that, despite challenging year, strategic transformation is on track.
In its annual report filed at Companies House this month, Hamleys detailed results for year ending 31st December 2017. The company reported a revenue reduction of 2.5% to 66.3m, which it said was due to market pressures and store closures. An adjusted EBITDA of £3m was reported, resulting in an EBITDA loss of £4.7m.
Overall, turnover was down £1.7m YOY, while profit/loss was down £13.8m YOY – making a loss for the year of 11.7m. Net assets were down £11.7m.
The company stated that trading continues to improve, with positive UK like for like sales growth of 2.7% in the eight months since year end, and that it expects to return to net profitability in the next 12 months.
Investment includes three UK travel store openings during 2018. Hamleys operates more than 130 stores globally and continued expansion plans include the opening of two Hamleys World format stores in new franchise market Japan in December 2018.
The group has implemented a transformation plan and aims to respond to “the challenging UK retail environment” by continuing to open new stores and investing in profitable outlets such as travel stores and international franchise markets; realigning the cost base of the business, especially in head office, and introducing supply chain efficiencies.
CEO Ralph Cunningham said: “2017 is now behind us, and our transformation plan is well on course to return the business to profitability. We have made substantial improvements to strengthen and consolidate the business, with an unwavering focus on improving profit, cash and sales. We still have more to do, however we are encouraged by our current trading performance in the first eight months of 2018, and our profitability has improved significantly. Despite the continuing challenges in the UK market, we are confident that the actions that we have taken will lead to sustained improvements to profitability and like-for-like sales in 2018 and beyond.”