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Robust Financial Results; Strong Black Friday Trading

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27th November 2017

Maplin is pleased to announce its financial results for the year ended 18 March 2017 and an update on its business developments since the period end.

Highlights of FY17 - robust results against challenging industry backdrop
  • Revenue of £236m, a year-on-year increase 0.5%
  • Two new stores opened
  • Positive like-for-like sales growth of 0.3%
  • Underlying EBITDA of £12.3m (FY16 EBITDA £13.2m)
  • Strong cash generation of £11.3m in-line with underlying EBITDA

The financial year 2017 marked the start of a multi-year investment programme in Maplin's 2020 vision.  While underlying EBITDA was a healthy £12.3m, it is lower year-on-year owing to substantial investment made across the business; developing a refresh of the brand identity, improvements to the digital infrastructure, focusing on the Smart product categories and the successful 'store of the future' pilot in Cambridge.  The foundations of the connected services offering were also laid with the expansion of installation services and the trial of free home surveys.  Together, these investments both update and broaden the appeal of the brand for today's consumers.

Post period end developments
  • 130 larger shops updated to new open/interactive format on Smart Home products as well as 10 stores in the new 'store of the future' format
  • Launched new consumer website in October
  • Free National Home Surveys launched from October with encouraging early results - average spend over £500
  • Major collaborations with Global Brands on new launches (DJI drones, Amazon & Google)
  • Strong trading over Black Friday - sales up 5% year-on-year including biggest ever trading day in digital with stores also positive
  • Big sellers on Black Friday were smart home hubs, speakers, security and bulbs, with ride on toys and drones also selling strongly
  • Well prepared and stocked-up for Christmas, with Black Friday success a positive indicator for Christmas trade
Robust funding position with sufficient headroom

In late 2016 Maplin completed a refinancing of its bank debt, securing an improved debt maturity profile, a lower funding cost and great headroom.  As we look forward our banking headroom provides Maplin with greater flexibility should the tough industry conditions remain and allows Maplin to execute on its 2020 strategy, which is designed to future proof the business and realise the huge opportunity in Smart Home.

Oliver Meakin, CEO of Maplin, commented: "We are confident that Maplin has a winning strategy and the financial flexibility to navigate what is a challenging retail backdrop and to fully realise the opportunity that our leadership in Smart Home presents.  We have re-energised the business and laid the foundations of the new strategy, which focuses on providing customers with expert advice and installation, to be delivered across a seamless, modern multi-channel offering.  Early results are very encouraging with sales of Smart Home products up 161%."

Meakin continues: "I believe that multi-channel will ultimately win out over online only models, with the Maplin full service and expertise our unique selling points for the majority of consumers who want the benefits that technology offers but are uncertain how to best harness them."