|Oddbins on track for profit despite £1.1m loss in first months of new company|
|Written by Elinor Zuke|
|Thursday, 07 March 2013 12:55|
Oddbins has insisted it is on track to make a profit within three years after it reported a £1.1 million loss in the first months of operation under new management in 2011.
Oddbins turned over £7.3 million in the 10 months to 31 January 2012 and made a pre-tax loss of £1.1m, according to results filed at Companies House.
The figures reflect the set-up cost of wholesaler European Food Brokers (EFB), which had to stock and hire staff for the 37 Oddbins branches it bought from administrators in April 2011 before relaunching the them in October 2011.
"The company is dependent upon continued financial support from its parent company and fellow subsidiaries. Assurances have been received that repayment of intercompany balances will not be required until the company is able to make such repayments, and that additional support will be available from within the group to enable the company to pay its liabilities as they fall due," the directors wrote.
A Oddbins spokesman said its plan to trade successfully within three years was "progressing extremely well."
Since relaunching Oddbins has embarked on a headline-grabbing media campaign by offering, for example, a 10% discount in January to groups of people it said "did not always receive the love that they probably deserved" including bankers, Germans and ginger-haired people.
"We have had some great campaigns that got people flocking into the stores - during the Olympics and Christmas in particular - and we have just had the strongest January Oddbins has had in many years," the spokesman said.