Mosaic Brands has returned to earnings growth despite faltering sales, clocking in a net profit figure of $2.7 million – 101 per cent up on last year – despite revenue falling 3.8 per cent during the year to 27 June.

Online sales also hit a new high of $111 million, up 19 per cent on the same period of last year.

Group chief executive Scott Evans said the business was incredibly pleased with the result, which came about after Mosaic Brands took actions to “reset the entire group for the future”.

“The benefits of these actions became evident in the fourth quarter, which delivered our second most profitable Q4 on record with comparable sales growth of 27.9 per cent and comparable margin growth of 33 per cent, against a backdrop of subdued sentiment amongst our core customer group due to Covid-19.”

And, while it said it had ended the financial year in a net positive cash position, the group has entered a trading halt in order to undertake a capital raising over the next few days in order to strengthen its balance sheet – given the uncertainty the current trading conditions create.

The first weeks of the new financial year have been difficult for Mosaic Brands, with the momentum gained in FY21 stalling due to widespread lockdowns.

“For the entire retail sector, it’s critical that by late October, stores nationally are able to open and be trading again,” said Mosaic Brands chairman Richard Facioni.

“From supply chain logistics to consumer and national sentiment, ongoing internal borders beyond this timeframe will leave lasting scars.”