A four-store independent furniture retailer has maintained stable revenues during a year marked by significant investment and economic headwinds. Sales for the year ending 31 January 2025 held steady at £9.1m, consistent with the previous year. However, pre-tax losses widened to £0.9m, compared to a £0.3m profit in 2024.
© Fairway furniture
Fairway Furniture attributed the flat turnover to a modest 0.4% rise in new business, with much of the benefit expected to materialise in the following financial year. Cost of goods increased by 2.52%, driven by supplier pricing pressures and shipping volatility, which led to a 1.13% drop in gross margin, down from 46.42% to 45.29%.
Managing Director Peter Harding noted that while inflation began to ease, overhead costs rose 4.43%, and staff costs climbed 9.2% due to salary adjustments and a slight increase in headcount aimed at boosting sales capacity. The business managed most other expenses within budget through "careful management and regular review."
Two exceptional items heavily impacted profitability: a major refurbishment of its Plymouth flagship store, funded from cash reserves, and strategic staffing changes that incurred substantial one-off costs.
Despite these challenges, Harding highlighted early signs of improvement, stating that "like-for-like sales in Q1 2025 were up on 2024," although consumer confidence remains fragile and trading conditions unpredictable.
Source: www.bigfurnituregroup.com