DISCOUNT clothing retailer Matalan said the building blocks were in place for recovery, despite seeing annual profits slip by 48 per cent.
Optimism was fuelled by growth in like-for-like sales in the nine weeks to May 1 of 3.1 per cent, with profitability maintained across its chain of 178 stores.
The group said it had overcome a series of setbacks last year that included poor choice of summer ranges, supply disruptions and intense discounting by high street rivals.
A cost-cutting programme has delivered annual savings of £5m while a new buying team for menswear has been drafted in to improve its autumn/winter collection this year.
Profits in the year to February 28 fell to £60.7m from £117.4m a year ago - a performance described by chairman John Hargreaves as deeply disappointing. But he added: "I believe that the building blocks for a recovery are in place."
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