THE boss of Beales says it has “turned the corner” and is on the “path to recovery” after publishing its first accounts since it was taken over in February 2015.

The figures come after a year in which the Bournemouth-based department store chain agreed a deal to cut its rent bill and announced the closure of 10 stores.

Trading company JE Beale made a “modest” profit of £338,000 after a £2.5million boost from “exceptional credits”. Those mainly related to the company voluntary agreement (CVA) in March which enabled the store to cut its rent bill at around a third of its stores.

Chairman Stuart Lyons said the company had been “overwhelmed” by support from customers – including more than 7,000 who signed a petition to prevent landlords turning the top floors of the Bournemouth store into flats.

Thanking staff for their commitment, he said: “The last two years have been challenging and there will continue to be challenges ahead. However, I believe Beales has now turned the corner and is on the path to recovery.”

The results span 17 months after directors moved their financial year-end from October to March.

Holding company Beales Ltd saw losses reduced from £16.3m in the previous 12-month period to £2.8m over the 17 months.

On an annualised basis, sales at JE Beale were down from £116.2m to £96.8m.

Directors say the closure of loss-making stores and the performance of the remaining 20 are expected to increase the profitability of JE Beale by more than £1m a year.

The directors’ report said: “The company has continued to make satisfactory progress during the present financial year, despite a difficult retail environment.”

Unaudited sales during the six months to the end of September 2016 were down 3.9 per cent. But store gross margins were “only slightly down”, expenses were much lower and “operating losses were sharply reduced”, they said. Unaudited pre-tax loss for the weaker six-month period in 2016 was £1.64m against £2.58m the previous year.

Beales was bought for just £1.2m in February 2015 by property investor Andrew Perloff’s company English Rose, at a time when it was heavily in debt. Directors said a cost-cutting programme introduced after the acquisition saved an annualised £1.5m.

Beales was founded on the site of its current Bournemouth store by John Elmes Beale in 1881.