Acquisition boosts Sterling sales to nearly £50m; Profits fall 58%

8th December 2009 | retail | Group sales at Scottish furniture retail giant Sterling climbed 7% to £49.2m in the year to 28th February, but same-store sales dropped 15% to £39.5m.

The results are the first to consolidate the financial performance of its February 2008 acquisition, Sofa Trend Ltd, which included furniture retailers Vogue and Archibalds.

In its group accounts, bosses said the effects of the recession coupled with significant costs associated with the acquisition and rationalisation of the new businesses had an adverse effect on profitability.

Group pre-tax profits fell to their lowest level in more than five years, to £1.15m from £2.73m.

Sterling, perhaps best known for pioneering UK out of town furniture retail and its mammoth Clackmannanshire flagship superstore, is also parent to Montrose furniture retailer Buicks and Anderson & England of Elgin. It also operates a number of other Sterling branded stores.