Furniture Village has swung to a pre-tax profit of £1.6m for the year following a loss last year, on the back of improving margins.
The pre-tax profit for the year ending March 30 came after a loss of £200,000 last year and this year the furniture retailer’s revenues edged up year-on-year by 2% to £185.7m.
Underlying trading EBITDA jumped from £1.8m to £6.2m during the year.
Furniture Village reports that towards the end of the previous financial year it set out to better realign margins and overheads to ensure the business could better withstand volatility and return to profitability.
The furniture retailer reveals improved margins were sought across every area of the business, alongside “significant overhead reductions” to return the business to a leaner cost base.
Furniture Village is now pursuing a growth strategy after landing a £6m investment from the Business Growth Fund, which involved a combination of long-term loan notes and 8% equity participation.
The company has identified “many new store locations” alongside potential to expand several existing stores and its online capability.
During its last financial year, the company said it successfully relocated its Croydon store in May 2013 to a new flagship location and opened a new store in Ipswich in August 2013.