Bonmarché posts 66% leap in profits

Selling cheap clothes to older ladies has paid off for newly listed Bonmarché as it today revealed a 66% jump in annual profit.

The over-fifties-focused chain, which floated last November at 200p a share, reported pre-tax profits to the end of March up 66.1% to £8 million on sales of £164.3 million, ahead nearly 12% on last year.

Chief executive Beth Butterwick said it had increased its market share of the “women’s value sector” by 14%, to 3.2%.

A new website has boosted its performance with online sales soaring 84%. The group plans five new stores and up to new 20 concessions in the coming year.

Kate Calvert, analyst at Investec, said: “Having already delivered an upgrade since its [flotation] , the full-year 2014 pre-tax profit was £100,000 better than expected and completes a successful first year as a listed company.”

The shares rose 1p to 284.5p, up more than 42% on its float price. The strong results are a significant improvement. In January 2012 it was rescued by private-equity group Sun European Partners after it went into administration.