Harveys and Bensons for Beds owner Steinhoff has recorded a profits surge after managing costs and taking a new approach to promotions.
Pre-tax profits at Steinhoff UK increased 42% to £20.8m for the year ending June 28 as revenues increased 5% to £470m.
The furniture group said it maintained “good growth in revenue” despite reducing store numbers during the year and temporarily closing stores for refurbishment.
Steinoff also said in its results filed on Companies House that its online offering “has continued to add value to the business”.
The retail group revealed its investment in its bedding website during the period had “paid dividends” with orders from internet sales recording double digit growth.
As a result, it is investing in the ecommerce side of its furniture business during the 2015 calendar year.
The company has managed to increase profit margins through “a change in the promotional calendar and careful management of cost of sales”.
Gross margin increased from 48% to 50.2% during the period and resulted in a gross profit of £236.2m, an increase of £20.6m year-on-year.
Steinoff added back office structures had been “rationalised” to improve the efficiency of the supply chain.
No comments yet