Home improvement chain Homebase has seen sales rise since the takeover from Australian group Wesfarmers, with the implementation of the Bunnings rebrand well underway.
Wesfarmers, which acquired Homebase for £340m from Home Retail Group back in February this year, reported a 7.5% like-for-like sales increase in Homebase transactions, with revenue of £517m for the first four months of trading.
According to its latest financial results for the year ended 30 June 2016, Homebase achieved earnings of £0.5m from 28 February 2016 since the acquisition with trading ‘in line’ with expectations.
Wesfarmers pumped in £60m on the transformation, increasing its product offer, whilst generating deeper stock holdings. The company revealed that it plans to open four to six pilot Bunnings Warehouse stores in FY17.
Richard Goyder, Wesfarmers managing director, said: “Since the acquisition of Homebase, good progress has been made to reshape the business, with results in line with the acquisition plans. The Group is confident that the acquisition will deliver long-term value for shareholders.
“Trading across the early months of ownership has been steady, a good result given disruption from a number of essential change and repositioning activities associated with starting to reshape the Homebase business and extracting it from the linkages to its former owner.
“Bunnings will continue to progress the establishment of its UK and Ireland business, with a focus on driving a stronger operating performance in Homebase while establishing pilot Bunnings Warehouse stores and infrastructure in line with a low-cost and high-capability operating model.”