PROFITS have soared at discount chain TJ Hughes, following a successful return to the business of chief executive Sue Tennant.

It took her just six months to turn poor pre-tax profits of £1.1m into a money-spinning £5.1m, following a back-to-basics programme.

The business owners, private equity firm Silver Fleet Capital, paid off former chief Robin Dickie last summer, and brought back Ms Tennant, who had left eight years previously to pursue roles with Ethel Austin and Rosebys.

She revamped the buying team, halted an expansion programme, and instilled traditional values back on the shop floor.

Ms Tennant said: “Business was down in the first six months, but we turned that round in the second part of the year, so it was quite a remarkable swing.

"I overhauled merchandising and got in some good experienced people who I have worked with before. I halted the stores roll-out programme and as someone who knows the business well, I made sure all our staff and the unions were with us all the way.

"I think maybe the business had lost its edge and as well as that the discount market has become much more crowded, so it is a tougher environment.

“We definitely needed to get back to basics and that has given us the confidence to go forward."

Deals on lingerie, fragrances and household goods drove earnings forward.

Profits slumped from more than £12m in 2005 to £1.1m in 2006. The figure of £5.1m for 2007 was achieved just six months after Ms Tennant joined. She added: “In the first six months of this year, like-for-like sales are ahead, so the picture is looking optimistic. As for new stores, we are not going to have the attitude of opening stores just for the sake of it.

“We will look to expand but in the right locations and at the right time. If you get a location wrong it can really damage the business, so it’s important to get it right.

“This business has been around for 98 years, and my job is to ensure there is longevity and stability.”

BILL GLEESON: PAGE 8;

PRIVATE BUSINESS: PAGE 9

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