Profit up 40% for £12.3m Sofa Workshop
Published 27.05.2011 06:34 | Last Updated 27.05.2011 06:34
The new and slimmed down version of Sofa Workshop is proving more resilient to tough trading conditions than its predecessor, with the retailer posting profits up almost 40% in the 12 months to end December.
Sofa Workshop, bought out of administration at the beginning of 2009 by a consortium of investors that included founder Andrew Cussins and the former owners of upholstery business Joynson Holland, made £1.4m before tax last year, up from just under £1m for the 15 months to the end of 2009.
Gross margin drove the profits uplift, rising 430 basis points to 45% for the retailer, which trades from half a dozen London stores and similar number dotted around the UK. Sofa Workshop sources upholstery from the UK, and one of its suppliers has a share in the company.
Sales increased from £12.18m in the 15 months to end December 2009 to £12.34m last year. Back in 2008, before its collapse into administration, sales were worth £30m, though about 20 stores were jettisoned by the administrator. It had been bought by MFI back in 2002.
By 31 December last year, net funds swelled to £3.14m compared with £2.6m at the same dateline in 2009.
Mr Cussins' second spell at the helm of Sofa Workshop was short-lived; he left soon after its revival to start a new upholstery retailer business called Sofas & Stuff. Yesterday it announced plans to open a fourth store, near Harrogate.