What: Liberty Retail announces a drop in profits for the 2022/2023 fiscal year despite a rise in revenues.

Why it is important: The overlook of the financial performance of Liberty Retail and the company’s positive outlook on the poor profit margins give an insight into the current conditions of the company’s health.

The annual report, with a year-end in January, stated a 41.5% jump in revenue from GBP 82 million to GBP 116.17 million yet a 99% drop in operating profit from GBP 2.48 million to GBP 22,000. According to the company, this is an exceptional situation that is a balancing out of the GBP 11.5 million impairment that it endured in the previous year.  Liberty Retail was optimistic about the company’s overall performance as it had been successful during the Christmas period despite inflation rates and had made increased online sales contributions towards its EBITDA.

Liberty Retail sales rise but EBITDA lags pre-Covid profits