- Sofology posts pre-tax losses of £385,000 in 2015
- Total sales jump 40% to £142.9m
- Like-for-likes increase 21%
Sofology – the furniture retailer formerly known as Sofaworks – has reduced its full-year pre-tax losses after a healthy rise in sales.
Total sales in the year to December 31, 2015 leapt 40% to £142.9m, the retailer reported. Like-for-likes in the period rose 21%.
Pre-tax losses narrowed to £385,000 in 2015 after losses of £12.5m in the prior year.
Chief executive Jason Tyldesley said the figures showed “signs of great improvement”.
In December 2013, the retailer changed its name from CSL to Sofaworks, but was forced to change it again 18 months later after the Intellectual Property Enterprise Court ruled that the name Sofaworks infringed DFS’ Sofa Workshop brand.
The business completed its switch to the name Sofology in February.
Tyldesley said: “The loss of the trademark dispute resulting in our name change to Sofology created significant headwinds and 2014 losses, but we have come out trading stronger than ever.”
He added that the biggest expense for the retailer came from “making significant cultural changes”.
In early 2014 the business dropped commission as a reward for sales teams in favour of measuring customer satisfaction. “It’s a strategy that has been difficult and costly to deliver,” Tyldesley said.
But he added: “Our dedicated team has beaten some amazing challenges in the last two years.”
Sofology, which has 33 UK stores, employs more than 1,000 people across the business and aims to open six new stores a year.
“We’re still relatively small in terms of market share, but we’re in a position now to grow,” Tyldesley said.