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Bestway Retail stabilises after restructure

04 April 2022 By Arabella Mileham

Bestway Retail has continued to stabilise the business following a major restructure a year ago, cutting operating losses from £8 million in 2020 to £2.25million in 2021.

The company was bought by the wider Bestway Group in order to stabilise the supply chain and build franchisee loyalty and has said that progress has been made to maximise efficiencies and synergies within the wider group, according to accounts filed at Companies House.

It operatives as a wholesaler and retailer under the Bargain Booze, Wine Rack and Central Convenience store brands, which it acquired from Conviviality Retail in April 2018 for £7.25m. Most of the stores are operated as franchisees, although there are a number of corporate stores.

The results were in line with expectations, the company directors said, with sales increased to £396m up from £388m in 2020, with gross profit margins also up 5.5%, compared to 4.7% in 2020.

However store numbers fell from 566 vs 587 last year, and net liabilities rose from £19.4million, up from £15.2million in 2020.

Last year saw losses rise by £2m, and gross profit margins falls to 12.8%.

The directors said that the continuing challenges and uncertainties due to Covid and Brexit were likely to result in a “substantial” restructuring of the UK economy, “a protracted economic recovery and changes in consumer demand.”

“The fundamental business pressures of wage and cost inflation will not dissipate. However, we believe the Company is in a strong position to withstand these pressures and continue to gain share within its respective markets,” the directors said.

“Despite competitive trading conditions, the directors are confident that we will continue provide the maximum support to the our customers by delivering the best prices, value and service to them.”

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