Steinhoff sees UK household division trim losses
Steinhoff International’s UK household division reduced operating losses by 12% despite Harvey’s ongoing losses in the past financial period.
Sales dropped from €339m to €314m in the six months to 31 March.
EBITDA losses dropped from €15m to €13m in the period and operating ;osses fell from €27m to €24m, a 11% reduction and a 12% fall in constant currency terms.
‘In a challenging UK furniture retail market that was also impacted by a later Easter in 2019, Euro-reported revenue in the UK household goods division decreased by 7% for the period under review to €314m. Constant currency revenue decreased by 8%, while like-for-like revenue declined by 5%.
Bensons’ revenue was flat, and the business continues to be profitable. However, the Harvey’s furniture business reported an 8% decline in customer orders and remains in a loss-making position.
‘The loss of two key suppliers negatively impacted sales of Harveys and Bensons during the period under review. Furthermore, teething problems with the migration to a new front office system resulted in issues with open orders and increased customer cancellations. These issues have now largely been resolved. Management has identified a number of areas of cost reduction and vertical integration that are a key area of focus as they continue the restructuring of this division.’