Sterling sees pre-pandemic £1m turnaround

Sterling Furniture Group saw a £1m turnaround in its bottom line before the pandemic hit retail.

Recently filled accounts show that a pre-tax loss of £713,065 was transformed to a profit of £338,639 in the year to 29 February 2020 for the 13 store chain.

Turnover rose 7% to £55.17m.

Gross margin rose from 46.1% to 46.4%.

‘The directors believe there continues to be a strong demand for house furnishings and fittings. Throughout the pandemic to date, this has proven to be the case, and due to the group’s commitment to improving and upgrading stores and the provision of an extensive variety of products to suit the group’s wide range of loyal customers, the directors are confident that turnover will continue to be generated post year end, particularly once the stores are able to open once more. This forecasted trading, together with advantage being taken of government support and initiatives, the utilisation of available bank facilities and the potential to obtain further financing if required, allows the directors to continue to work hard to ensure the group maintains adequate cash balances. Thus, with cash in the bank at the date of signing these financial statements, access to government support; the ability of the team to adapt and work within the Covid-19 restrictions; and future forecasted trading expectations; the directors are satisfied that the group will have adequate resources to continue as a going concern for the foreseeable future,’ says the accounts.

SterlingMar21

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