The fashion retailer, New Look has reported a return to profit following a signification restructure. The company reported a core underlying operating profit of £33.2m, up from an operating loos of £35.7m in the previous year. During the year the company identified cost savings of £80m, with further savings identified in the current year.
The restructure has continued into the new financial year, with a raft of board changes including the appointment of appointment of Nigel Oddy as chief operating officer and the departure of non-executive director and founder Tom Singh, as well as the appointments of Angela Luger, Colin Henry, Richard Cotter and Robin Terrell as non-executive directors of the board.
‘We have achieved a remarkable amount over the past year, delivering on our aim to achieve financial and operational stability. Firstly, we have made progress in recovering the broad appeal of our product and have delivered year-on-year improvements in profitability across key areas. Our e-commerce and store businesses are now working together better than ever, and we are starting to see the benefits of improved speed to market. Secondly, we have exceeded our cost saving plans, addressed our previously over-rented UK store estate, completed the review of our international businesses, and delivered further operational efficiencies across the business.
“Thirdly, we have successfully completed our financial restructuring, which has secured the company’s future and long-term profitability by materially deleveraging our balance sheet and providing us with the financial flexibility to better attack our future.
“We recognise that the past year has been incredibly challenging for our colleagues, investors, suppliers, creditors and other stakeholders. We are grateful for their continued support, and I particularly want to thank those colleagues who left the business for their contribution during their time here.
“Whilst New Look enters the new financial year in a fundamentally healthier and stronger position, in many respects today marks the starting line. We have more work to do to enhance trading and deliver further operational improvements as we continue our turnaround plans.
“Last year’s events restricted our ability to attract new talent. With the restructuring now complete, we can begin investing in our leadership and I am delighted that Nigel Oddy has joined us as Chief Operating Officer. Furthermore, we have a new Board in place to help deliver our plans.
“We expect the retail environment to remain as challenging as ever in the year ahead, with continued Brexit uncertainty and unseasonable weather impacting current trading. However, we will continue to focus on what is in our control by further enhancing profitability through our fantastic product, building brand equity and grasping new market opportunities.
“As New Look celebrates its 50th anniversary this year, I remain confident in the strength and appeal of the New Look brand, which I expect to continue to thrive in the years ahead.”
– Alistair McGeorge, Executive Chairman
