Sofa retailer CSL revealed a pre-tax profit jump from £200,000 to £2.5m in the year to December 31, 2012 as it plans to invest £4m to expand the business in Scotland.

The 22-store retailer generated a 16% like-for-like sales increase last year, while gross revenue surged 43% to £110m. EBITDA advanced to £3.6m from £1.1m the previous year.

CSL said the positive performance was driven by a “huge increase” in its direct orders and online business, while its three new stores in Thurrock, Croydon and Hull made “significant contributions”.

CSL plans to open a distribution centre between Glasgow and Edinburgh in May to support store openings in the Scotland. It will open its first Scottish store, at 20,000 sq ft, on Abbotsinch Retail Park in Paisley, Glasgow before Easter.

The planned expansion comes after it noticed a flood of orders from the country through its online channel after it boosted its national advertising strategy in the year.

CSL also plans to open a new 22,000 sq ft store in Slough in May.

CSL managing director Jason Tyldesley said: “Our performance has been driven by product innovation and design, and a relentless focus on providing the best customer service in the industry.

“The strength of our performance during the last 12 months has given us the confidence to continue our investment and expansion. Our big focus is on expansion into Scotland, Southeast of England and building our direct and ecommerce business, which has been a major part of our organic growth during the last year.”

In addition, across the last year CSL said its ‘love it or exchange it’ guarantee, which offers customers the chance to exchange their sofa if they are unsure of it, has also driven incremental customers through the doors.

CSL said it had a particularly good Boxing Day and January Sale trading period with like-for-likes rising the five weeks to January 6.