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The billionaire family behind the discount chain Home Bargains paid themselves a £36mn dividend last year after the retailer notched up a rise in profits and sales amid the cost of living crisis.
The Liverpool-based company reported an increase in turnover from £3.4bn to £3.7bn in the year to June 30, according to accounts filed with Companies House on Tuesday by parent company TJ Morris. Pre-tax profits rose from £293mn to £332mn.
TJ Morris is owned by the Morris family and headed by Tom Morris, who founded the retailer as a single shop in 1976. It has since grown into one of Britain’s biggest private companies, selling everything from toys to homeware and electricals from its almost 600 shops. According to The Sunday Times Rich List, the Morris family’s fortune reached £6.1bn in 2023. It paid £91mn in tax according to the newspaper’s 2024 Tax List.
TJ Morris said it shed more than 1,500 jobs last year, with staff numbers falling from 28,401 to 26,845 during the period, according to the filing. However, the company added that it aimed to “continue its current levels of growth” and planned to eventually have between 800 and 1,000 shops in the UK.
At the end of last year it had 594 Home Bargains stores, with the bulk of those shops in the North and Midlands.
Discounter chains such as Home Bargains as well as Aldi and Lidl have fared particularly well during the cost of living squeeze as cash-conscious shoppers have traded down and hunted for bargains. Most value chains have also been investing in expansion as they seek to strengthen their foothold in a highly competitive sector.
The company was owed almost £170mn from related parties, amounts which were “personally guaranteed” by Morris, a third generation shopkeeper and the ultimate controlling party. Its key management team was paid £15mn.
TJ Morris said it did not adopt a corporate governance code because it was family-owned “with a flat structure with commonality of ownership and leadership”. This enabled “clear lines of communication to ensure accountability and transparency”.
The company declined to comment.
