Space NK turnover falls but subsidiary sale sends profit surging
Space NK has filed its results for the year to March 27 2021 and said that turnover fell 11% to £111.8 million during the period. This reduction was caused by its retail stores having to close for a large proportion of the year due to the pandemic.
However, group EBITDA during the period rose to £92.7 million, from £7.7 million, boosted by the sale the day before the year ended of Space Brands Limited. This wholesale subsidiary of the company was sold to China-based Yatsen Holdings Limited with a profit on the sale of £83.1 million.
Operating profit therefore rose to £88.9 million from £3.6 million and net profit for the period was £87.6 million, up from £2.6 million a year earlier
The 12 months cover virtually the start of the pandemic and the first lockdown, plus several subsequent lockdowns across the UK.
The company was heavily affected by these lockdowns with store closures having a big impact on its retail sales both during the year and into the new financial year.
However, online sales went part of the way to make up for the retail losses. The now-sold wholesale division also helped to balance out the store closures as it was less affected by the pandemic restrictions.
The company also said that there remains uncertainty because of the current economic conditions but it has adequate liquidity and access to funding.
The business has also been continuing to improve its store estate with a number of upgrades and space expansions, as well as new campaigns.
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