In unaudited trading figures for the 26 weeks to October 29, Homestyle - which operates under the Harveys, Bensons, Sleepmasters and Bed Shed fascias - posted sales orders for May to August last year down 8 per cent on the previous year. However, sales orders from September last year to January 21 this year are up 13 per cent on the comparible period and cumulative sales orders for the 38 weeks to January 21 are up 5 per cent.
Chairman Donald Macpherson admitted that the legacy of the group's cashflow problems hit financial performance in the six months to October 2 last year. Turnover for the period was£182.8 million against£206.5 million in 2004 and pre-tax losses were£25.4 million versus a loss of£3.4 million in 2004.
Harveys had a poor first half, achieving sales of£87.9 million compared with£111.6 million in 2004. The sharp reduction was mainly as a result of the problems encountered from February to July last year, said Macpherson, and the outcome was an operating loss of£27.0 million in the first half.
'However, since August 2005, a combination of innovative new products, revived national advertising, more attractive store layouts and improved staff confidence have resulted in a significant uplift,' he said. 'Cumulative sales orders for the 38 weeks to January 21, 2006 are up 10 per cent on the comparable period last year.'
Bensons, Sleepmasters and Bed Shed achieved sales of£94.9 million, in line with the previous year. However, operating profit of£2.9 million was well down as a result of reduced gross margins from more competitive market conditions and increased fixed costs.
No comments yet