Bonmarché owner Purepay Retail posts turnover growth as pension charge curbs profit

UK retail group Purepay Retail Limited (Purepay), which operates fashion and retail chains The Edinburgh Woollen Mill (EWM), Bonmarché and Ponden Home, has published its consolidated financial statements for the 53-week period ended March 1, 2025. The company recorded an increase in annual revenue, though bottom-line earnings narrowed following exceptional pension obligations.

Turnover for the 53-week period rose by 3.4 percent year-over-year (YoY) to 236.88 million pounds (315.2 million dollars), compared to 229.09 million pounds in the 52-week period ended February 24, 2024. Gross profit reached 44.22 million pounds, up from 40.39 million pounds the year prior.

Operating profit impacted by pension obligations

Purepay reported an operating profit of 6.69 million pounds, down 56.17 percent from 15.26 million pounds reported in the previous period. Administrative expenses expanded to 37.53 million pounds from 25.12 million pounds.

The operating contraction reflected a significant one-off balance sheet adjustment. On November 5, 2024, the business became the sponsoring employer of the former Edinburgh Woollen Mills defined benefit pension scheme, resulting in a net cost of 5.65 million pounds debited directly to operating profit to account for initial liabilities.

EBITDA before exceptional items and one-off pension costs amounted to 14.62 million pounds. Profit before taxation dropped to 1.90 million pounds from 9.79 million pounds in the prior fiscal year, while net profit for the financial year concluded at 1.51 million pounds, compared to 8.03 million pounds previously.

Retail network expands despite high street headwinds

The group continued to recalibrate its physical estate across the UK high street and non-traditional trading spaces. Across the 53-week period, Purepay opened 27 standalone stores and closed 14 underperforming units, ending the financial year with 433 stores.

The chain breakdown comprises of Edinburgh Woollen Mills eight store openings and four closures, resulting in 202 operational doors and 19 Bonmarché store openings and 10 closures, finishing the year at 231 locations.

Trading footfall continued to expand subsequent to the reporting date. Purepay indicated that its ongoing store estate stands at 449 properties, consisting of 216 EWM outlets and 233 Bonmarché shops.

Value-led positioning drives womenswear demand

Purepay attributed its sales progress to resilient demand across its primary retail demographics. In its strategic overview, the board stated that EWM sustained steady engagement across its core consumer base aged 50 plus through a “first price, right price” approach, declining to follow broader promotional price cuts.

The company also underlined steady demand at womenswear division Bonmarché, citing consistent traction for affordable everyday garments positioned between discount operators and the mid-market high street.

Purepay director John Jackson and the board noted that they maintain confidence in current store-led strategies to combat UK high street inflation, wage increases, and fluctuating customer footfall.