Brighthouse sees boost despite high street gloom
05 July 2011 09:41
Watford-based Brighthouse, the UK's largest rent-to-own retailer, is to press on with expansion plans despite the gloom afflicting other parts of the high street.
The group, which currently has 228 stores, will open another thirty this year as part of a long-term aim for a chain of 650 outlets across the UK.
Sales in the year to March rose by 15.4% to £227.7 million, with like-for-like sales rising by 9.2%.
The firm said that despite the wave of retail firms folding, its business remained "relatively buoyant", adding that the gaps now appearing on the high street following the closures will help its expansion programme, especially if spots become free near the giant chains that have a lot of customers passing through.
In recent weeks, Jane Norman, TJ Hughes and parts of Habitat group have gone into administration, while Thorntons, Carpetright and Mothercare have all announced widespread store closures.
Brighthouse has benefited from the economic downturn because it extends credit to its customers at a time when banks are lending less.
It supplies 200,000 customers, many of whom are cannot get credit elsewhere, with big ticket items such as laptops, TVs and furniture.
Payments are made over three years at a rate of interest of about 30%, but despite criticism over the eventual cost of items, the group insists it is a responsible lender that serves families in some of the most socially deprived areas of Britain.
Underlying profits in the year to March rose by 16.4% to £39.7 million, with margins stable and consistent debt management.
The company, which employs over 2,600 staff, is owned by private equity firm Vision Capital.
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