Losses Reduce At CDS Superstores

Losses reduce at The Range as sales grow driven by the acquisition and rapid expansion of 53 Homebase stores along with the relaunch of Wilco.com.

CDS Superstores trades as The Range, which acquired the Homebase brand and up to 70 stores. It also acquired the Wilko brand name in 2023.

Here are notes taken from the group strategic report by founder and executive chairman, Chris Dawson.

Summary of the Group Strategic Report – CDS Superstores (53 Weeks Ending 2nd February 2025)

• Business Highlights: CDS Superstores (trading as The Range) delivered significant revenue growth to £1.47bn (+13.5% YoY), driven mainly by retail expansion and the acquisition/rapid conversion of 53 former Homebase stores. Like-for-like store sales rose 3.96%, notably strong despite poor summer weather which affected patio and garden ranges. Investment in new distribution infrastructure and the Wilko.com online business also supported growth.

• Profitability: Headline gross margin fell slightly to 33.8% due to extra distribution centre costs, though underlying retail margin improved (better USD rate and freight costs). Operating profit increased £30m year-on-year to £50.2m, supported by an £18m gain on financial derivatives. Pre-tax profit returned to positive territory (£0.54m), although minimal, reflecting heavy one-off costs from major integration and growth projects.
  
  
• Online Expansion: The relaunch of Wilko.com and continued digital investment led to £60m in additional online revenue. However, the Wilko drop-ship model yielded lower margins than in-store retail, impacting overall profitability in the short term. Outsourcing online fulfilment to The Hut Group is expected to boost future efficiency and cost management.

• Financing and Assets: A temporary £50m uplift of the revolving credit facility funded the Homebase store acquisition. Net assets held steady at £313m. Inventory increased to £311m to support new store openings and seasonal sales.
  
  
• Outlook & Future: CDS expects future growth from continued store expansions and the integration of converted Homebase sites. Post-period, 40 new stores have already opened, and improved trading conditions (especially weather) have since benefited garden and patio ranges. The group maintains strong market positioning, with forecasts for further revenue and EBITDA uplift and planned reduction of temporary credit facility debt.

Source : Reproduced with permission from George Bullivant at Gardenforum

Image : The Range (corporate)

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