Profits at Home Bargains fell by 26% last year despite a 2% rise in sales as more stores were opened.
Operating profit dropped from £394m to £290m in the year to 30 June 2022, while turnover climbed from £3,338m to £3,419m.
The business credited the higher revenue to both new stores and increased contribution from existing outlets.
The company had 572 stores at the end of the period, 20 more than a year earlier. More new stores were planned for the next financial year, with a long-term goal to have between 800 and 1,000, the accounts said.
Dividends totalling £30m were paid in respect of shares held by company directors, including majority shareholder and CEO Tom Morris.
Home Bargains’ estate will have been boosted this year by the acquisition in January of the smaller but similar-format variety discount chain Quality Save.
Quality Save’s 21 stores in the north of England have since begun converting to Home Bargains’ banner. The smaller chain was already supplied by Home Bargains.
Home Bargains employed 28,400 people in its latest accounting period, 850 more than a year earlier, and paid £489m in remuneration, up from £459m.
Directors’ remuneration climbed from £1.4m to £15.2m, including £14.1m to the highest paid director.
The period also saw the recruitment as directors of Stuart Morris, Tracey Hunt, Paul Rowland and Daniel Sowden, taking the number of directors to five.
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