Two-store independent improves profit despite sales fall; Gross margin maintained

31st July 2009 | independents | West Midlands and Dorset retailer Cookes Furniture believes it will increase profits for the third successive year in 2010 as it continues to drive down costs.

The furniture independent, one of Britain’s largest, took post-tax profit to £152,000 in the year to the end of March 2009, up from the £112,000 it made last year but down £18,000 on its 2007 figure.

The firm cut its wage bill, including director pay, by more than £1m to £2.06m, although its 2008 salary outlay was significantly higher than in any of the prior three years.

Cookes has two stores, an 85,000sq ft site to the north of Birmingham and a smaller 20,000sq ft outlet in Christchurch on the south coast. The firm says it managed to maintain its gross profit percentage in the past year, despite suffering falling revenues.

No turnover figure was given, but gross profit fell more than £900,000 to £4.07m. The firm invested heavily on security and safety measures at its flagship Birmingham store in the past year, as well as extending the showroom by 10,000sq ft.

It added that it conservatively estimated 2010 turnover to be in line with this year, but that it was seeing signs of recovery through returning customer confidence and it was hopeful to improve sales.