The Stokers group of furniture stores, headquartered in Southport, reported a decline in profits for the year ending 30 April 2024, despite maintaining its position as a leading player in the market. Net earnings fell by 41% to £3.95 million, driven by a combination of increased costs and a reduction in revenue from record highs.
Photo: Doorway to Value.
Sales for the period dropped by 12% to just over £61 million, ending a three-year streak of all-time high turnover levels. While gross margin improved by 40 basis points to 38.3%, the significant rise in administrative costs—up 41% year-on-year—contributed to the dip in profitability.
During the 2023/24 financial year, Stokers invested over £2 million in the expansion of its Doorway to Value store in Chorley, increasing its retail space by 10,000 square feet. The project, previously announced, was completed near the end of the reporting period. Alongside its three flagship Stokers stores, the group operates under a variety of brands, including Lucas in Aylesbury, Christopher Pratts in Leeds, Annetts Fine Furniture in Hereford, W&T Nettleton in Wakefield, and Fredmans in Paignton.
Despite the capital expenditure, the group's cash reserves remained largely stable at £13.7 million, slightly above the previous year's £13.6 million. This stability was supported by higher current payables, including an increase in the directors' loan balance. Year-end net assets saw a minor decline to £52.3 million from £52.4 million in 2023, reflecting £4 million in shareholder dividends.
The financial performance underscores the challenges posed by rising operational costs and a softer revenue environment, even as the group continues to invest in its infrastructure and brand portfolio. Stokers remains committed to its long-term strategy, retaining a strong market position despite the near-term headwinds.
Source: www.thefurnishingreport.com