In an AGM statement issued today, the group also said sales at its retail arm, including the Sofa Workshop chain, were down 8 per cent on a same-store basis. Order numbers so far this year are down 19 per cent. The company said this was in line with expectations and consistent with its strategy of avoiding unprofitable sales.
Sales at MFI's joinery division were up 8 per cent on a same-depot basis so far this year. However, sales are expected to be flat overall for the first half of the year because the promotions of June last year will not be repeated.
Investec analyst Mark Charnock said: 'There are cautious comments in the statement about the challenge of effecting the reorganisation in UK Retail. These challenges could well frighten off bidders or mean MFI Group would still need to manage its way out of a rump of stores that a buyer wouldn't want. In short, a low-cost exit from UK Retail is far from a certainty.'
Earlier this year, MFI announced a restructuring of the business into three separately managed divisions. UK Retail, Howdens Joinery and MFI's supply arm all became separately accountable businesses.
The furniture group's interim results will be published at the end of July.
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