The Renfrewshire-based company's latest accounts, published yesterday, show that it made a pre-tax loss of £2.33 million in the year to February 22. This was a significant improvement on a pre-tax loss of £8.62m in the previous financial year. And this improved result was achieved even though turnover fell from £173m to £169m.
Mackays Stores Group, which has a workforce of nearly 1000 in Scotland and employed an average of 3742 people in total in the year to February 22, highlighted its operating profit of £444,000, before amortisation of goodwill. This operating profit is stated before net interest payable of £2.37m, goodwill amortisation of £1.34m and a £932,000 gain on sale of fixed assets.
In the year to February 24 2012, Mackays Stores made an operating loss of £5m, before goodwill amortisation. This 2011/12 financial year result was its first operating loss in about 50 years of trading. Mackays highlighted the success of its autumn and winter product ranges in the year to February 22.And it noted that its net bank borrowings had fallen by £9.4m during the financial year, to £22.8m.
Iain McGeoch, chairman and major shareholder of the family-owned company, said yesterday: "I am pleased to say that, following a very disappointing performance in 2011/12, we returned to profitable trading in 2012/13 despite some extremely poor summer weather.
"Autumn/winter season was particularly encouraging, with our restructuring of the buying operation in late 2011 leading to much better product direction and renewed focus on quality. Trading was greatly improved from July 2012 onwards as the... new product ranges hit stores."
He revealed the improved performance of the retailer, which has nearly 300 stores in the UK, including 66 in Scotland, had continued into the current financial year.
Mr McGeoch said: "In the current financial year, our improved performance has continued and our year to date operating profit is well ahead of 2012/13, with a further significant reduction in net debt."
He noted strong growth in the firm's online business.