Matalan boosted by bargain-hunters but sterling remains a worry

Bargain-hungry shoppers after cheap clothes and homewares have boosted sales at Matalan — but the retailer has warned that the weaker pound remains a big concern.

The business, which has 227 shops, mostly in retail parks, posted revenues of £262.4 million, up from £259.9 million, in the second-quarter to August 25. But underlying profits edged up to £22.8 million from £22.7 million, thanks to selling more goods full-price over the summer.

Jason Hargreaves, chief executive and the son of billionaire founder John Hargreaves, said: “The results reflect a solid performance in what continues to be a volatile and challenging market.” He added that the “significant currency pressure” will probably increase through the rest of the year.

However, he added that his strategy — to sell more products online and refurbish Matalan’s existing stores — will help the business outperform the market.