Woolworths chief hopeful despite £46m loss

Woolworths boss Gerald Corbett has said he remains hopeful despite reporting a full-year loss of £46 million.

Full-year pre-tax losses hit £46.4 million and the company's pre-tax profit before exceptional items and goodwill was £33 million.

The company’s profits were let down by a drive to clear excess stocks and low sales over the Christmas trading period.

The company was also hit by a £72 million charge relating to stock adjustments, demerger costs and the closure of e-Woolworths.

However, despite these losses chairman Gerald Corbett said the company had got itself into a position to make a recovery in 2002.

In the first seven weeks of the new financial year like-for-like sales were up 6.2 per cent, driven almost entirely by Easter falling two weeks earlier this year.

The former Railtrack boss said the company had now stabilised, with debts brought down and the recruitment of a stronger management team.

Gerald Corbett, the company's chairman said: “The foundations for improving the operational performance of the business have now been laid. We have made a reasonable start to this financial year and are confident of delivering a recovery in profitability.

"Our priority since demerging last August has been to stabilise the business, address high levels of overstocking, bring down debt and strengthen the management team.

"We have made progress on all accounts, with stock levels down over £110 million at selling price, demerger debt paid down and the appointment of a highly experienced retailer as our new chief executive, Trevor Bish-Jones."

(AMcE)