Tapi enjoyed almost tenfold sales growth
Flooring chain Tapi’s sales grew almost tenfold last year as a faster than anticipated expansion boosted sales.
The company saw sales break through the £30m barrier last year, recently filed accounts reveal.
In the year to 31 December 2016, sales jumped from £3.28m to £30.29m as it grew from 27 stores to 67.
Gross margin rose from 42% to 56% as sales volumes rose.
Pre-tax losses increased from £4.5m to £10.19m.
‘The primary focus of the company at this stage of its evolution is to continue the aggressive store opening programme. The nature of this robust long-term plan fully anticipates accounting losses in the early years of trading but a quick transition to growing profits thereafter,’ said the company’s strategic report in the accounts.
‘At the beginning of the period the company was trading from 27 stores and by the end of the financial year was trading from a total of 67 stores, supported by a fleet of 34 mobile showrooms and an informational website.
‘A further 17 stores have been opened since the year-end and the directors expect to open another 9 during 2017 making a total of 93. During the period, the company issued a further 13million ordinary shares of £1 raising funds of £15.6m to continue the development of the business.
‘The company has gained the backing of various high profile shareholders that has enabled a rate of expansion that is at a faster pace than was originally planned. These shareholders have indicated a keenness to continue the rollout strategy and support the business in its future growth plans.
‘Customer service is of paramount importance to the board and performance is measured via the Trustpilot rating. This is currently at an industry leading 9.4 with 93% of respondents rating the customer experience as either 4 or 5 out of 5. The proportion of respondents that would recommend Tapi to friends and family stands at a remarkable 96%.’
Tapi opened its first store in May 2015.