Home Breaking Homebase makes significant progress in a turnaround

Homebase makes significant progress in a turnaround

by LLB Reporter
17th Apr 19 11:29 am

Homebase has narrowed their losses in the second half of 2018 as the new owners are seeing positive signs of progress.

As part of the restructuring programme after Hilco bought the company for £1 from Wesfarmers, the DIY retailer closed 47 outlets in 2018.

On Wednesday the company said they have cut costs by £100m and the firm has made significant progress in turning the failed company around.

In the half year to 30 December 2018, operating losses improved by 79.1% 6o £39.1m compared to £187.3m in the same period of 2017.

The restructuring of the head office saw roles cut by 38% along side the company voluntary agreement (CVA), this enabled Homebase to secure rent reductions across 70 sites and close loss-making stores.

Hilco secured £95m in lending from Wells Fargo and closed two of six distribution centres.

Sales have slightly slipped from 3.5% to £497.8m from £515.6m compared to the previous year of the same period.

Damian McGloughlin, Homebase chief executive said, “The benefits of the changes we have made are starting to come through and I am extremely grateful for the loyalty, energy and support we have received from our team members and suppliers.

“Clearly, we are only 10 months into a three-year turnaround plan.

“Homebase remains one of the most recognisable retailers in the UK and Ireland, and the progress we have made in reinvigorating our customer experience means we are very optimistic about the future.”

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