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// Discount retailer The Original Factory Shop heralds resilience of business model
// Sales and profits up at private equity-owned firm as it goes into black for first time since 2019
Discount retailer The Original Factory Shop has made a pre-tax profit for the first time since 2019 as sales jumped by more than £30 million.
Its latest accounts have revealed that the Burnley-headquartered company reported a pre-tax profit of £6.6 million for the 12 months to 27 March 2022, up from a restated loss of £2.9 million in the prior year, according to Business Live.
The Original Factory Shop, which has around 180 stores, also reported a turnover of £124.4 million, a rise from £92 million the previous year.
The clothing, beauty, home goods and groceries retailer has also boosted its staff numbers from 1,882 to 1,936 during the year.
The business recently announced a tie-up with Co-op and has been owned by private equity firm Duke Street since 2007.
In a statement signed off by the board the company said: “Over the past two years The Original Factory Shop has, like all business, had to adapt to a rapidly changing world. The early part of the year continued to be affected by the ongoing uncertainty and impact of the pandemic.
READ MORE: The Original Factory Shop plans to open 50 new stores in 3 years
The company continued: “As the year progressed we saw the impact of rising inflation on product cost prices and consumer spending.
“The strength and resilience of the business model enabled us to continue to serve the needs of our local communities.
Recent reports suggested that the retailer was exploring a sale after receiving a number of takeover approaches, with long-standing adviser Deloitte to field interest in a deal.
The company was not running a formal sale process and had not been planning to launch one until next year but a number of other industry players are said to have expressed interest in a deal.
After launching its ecommerce site in 2020, in July the company announced it was introducing a new loyalty app as part of its growth strategy.
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