Bridgepoint-backed Fat Face defies high street woes with ‘positive momentum’

Clothing retailer Fat Face has reported profit growth despite the financial woes facing the UK’s high streets.

The company generated revenues of £238m in the 52 weeks to June 2, a year-on-year increase of 7.4%.

Fat Face is majority owned by Bridgepoint Capital, the London-headquartered private equity firm.

Overall earnings before interest, tax, depreciation and amortisation in the period rose 5.6% to hit £30.2m.

Fat Face attributed the growth to an increased demand for its womenswear lines.

But the boss of the Hampshire-based retailer, which operates a network of 216 stores in the UK, warned that tough trading conditions on the high streets showed ‘no prospect’ letting up any time soon.

According to chief exec Anthony Thompson, the current retail environment “remains difficult”.

He said: “There appears to be no prospect of conditions improving in the short term.

“We will continue to be focused on quality, design and price integrity and will seek to continue the positive momentum in today’s results in the coming 12 months.”

Fat Face has 17 shops overseas and plans to expand that number. This will include a new push into the US, where it opened five stores last year.

Speaking further, Mr Thompson said: “The implementation of our longer-term strategy is on course.

“Expansion in the US continued and the business there is trading strongly. With the initial market trial concluded, we are now undertaking a measured roll-out programme.”

Fat Face’s positive results stand in stark contrast to the travails of its fellow high street names, among them House of Fraser.

The department store was saved last week from the brink of collapse by billionaire businessman Mike Ashley, who acquired the company out of administration for £90m.

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