HOME appliance giant Powerhouse Holdings, which has its headquarters at Bicester, has announced record pre-tax profits of £7.2m for the year ending March 28, 1998.

The company also increased turnover at its 39 supertores and 79 High Street stores nationwide to £153.5m, representing an underlying growth of nine per cent.

Powerhouse, originally the appliance distribution arm of the old Eastern, Midland, and Southern Electricity Boards, was the subject of a management buy-out from Hanson in June 1996.

The company now employs 117 people in Bicester, down from 160 before the buy-out, and 1,400 nationally - down from nearly 3,000. Chief executive Glyn Moser said: "Profit before taxation increased substantially to £7.2m after paying £1.31m in profit share to employees.

"During the year we invested more in staff training than ever before and we have opened eight new superstores. We have undoubtedly strengthened Powerhouse's position as the local home appliance specialist."

But Mr Moser predicts a tough year ahead following the Monopolies Commission recommendation to outlaw the price-fixing arrangements that some manufacturers of white goods impose on retailers. He told the Oxford Mail: "The competition is pretty tough already, but if it gets tougher with even lower margins, we are in a good position to weather it. We offer good value for money and about 25 per cent of our white goods are sold under our own well known brand name Electra and will therefore not be affected."

He added that he attributed much of the upturn in the company's turnover to the £35m windfall money that came onto the market last year, although the pick-up in the housing market had also helped.

Next year the firm, which has repaid early its £1m borrowed from Barclays Private Equity at the time of the buy-out, plans to open another six superstores.

Mr Moser added: "I am confident that Powerhouse now has the trading format, systems, products and quality of service in place to allow us to look forward to another year of sound progress."

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