- Dreams’ EBITDA jumps 207% in single year
- Like-for-likes and revenue show strong growth
- Dreams in second year of three-year turnaround plan
Beds specialist Dreams’ full-year profits have more than tripled after strong sales as its turnaround plan remains on track.
Dreams’ pre-tax profits soared 3,175% from £400,000 in 2014 to £13.1m in the year to December 23, 2015.
The retailer posted a 207% jump in EBITDA to £21.1m.
Like-for-likes in the period rose 19.4%, as the second-half outperformed the first. Total sales climbed 16.2% to £234.2m.
The improvement stems from a three-year plan, instrumented by chief executive Mike Logue. He took over the ailing business in August 2013, when it was losing £5m a year.
The beds specialist has benefited from significant investment by owner Sun Capital, which has invested £18m since it bought the company out of administration in 2013.
Every store in the retailer’s estate has been refurbished.
Sales conversion rates have also jumped, going from 14.3% in 2014 to 19.4% in 2015, with average sales per store up 16% over the year.
Sales per store worker have jumped 23% over the past two years, with sales per square foot up 32% in the same period.
A focus on product improvement has seen returns rates improve significantly, going from 13% in 2013 to below 5% currently.
Logue said: “We are only in the second year of a three-year plan but we are a year ahead of schedule.
“Yes, the timing is good as the market has improved but we are improving at three to four times the market rate. The speed of this journey has been incredible.”