The rent-to-own retailer BrightHouse has defied the retail gloom by reporting a leap in sales and profits, helped by a surging demand for BlackBerrys and tablet computers among poorer consumers.
The company, owned by the private equity group Vision Capital, has grown rapidly in recent years and opened 30 stores in the year to March 31. It plans to open another 30 this year, taking its total to 258.
Like-for-like sales rose 9.2 per cent, with total revenue up 15.4 per cent. Earnings before interest, tax, depreciation and amortisation rose 16.4 per cent to £39.7 million. Sales of electrical appliances rose 38 per cent, the chief executive Leo McKee said.
The store sells furniture and electrical items to customers who are typically poorer and without access to bank credit, offering weekly instalments at about 29.9 per cent APR interest.
Mr McKee said that the BlackBerry had become a big seller and that tablet computers had also performed well. “The BlackBerry, which is traditionally a business tool, is used by our customers extensively for social networking. We have seen BlackBerry sales and Acer tablet sales soar,” he said.
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“Despite the travails of the high street, we continue to see customer demand for our products and services remain relatively buoyant. The current financial year has started in line with management expectations and we are working towards delivering another positive year.”
BrightHouse’s success has been mirrored by the rise of the pawnbrokers. H&T said two weeks ago that it expected first-half profits to land towards the top end of analysts’ expectations. Albemarle & Bond, its listed rival said that like-for-like sales were rising at more than 20 per cent.