Barker and Stonehouse, the Teesside-based furniture retailer, has reported a return to sales growth following the first three quarters of its 2024/25 financial year. Managing Director James Barker expressed satisfaction with the privately-owned company's performance, particularly in the final quarter of 2024. The retailer has benefited from expanding its Fenwick Newcastle concession to 12,000 sqft, nearly doubling its size.
Photo: Barker and Stonehouse.
Barker noted that the company was also starting to realise the advantages of its new Enterprise Resource Planning (ERP) system, which went live early last year. The ERP system has provided enhanced visibility in key areas such as stock control and planning, contributing to improved efficiency.
The cost of implementing the ERP system was a significant factor contributing to a decline in net profits, which fell from £2.36 million to £558,000 in the financial year ending March 31, 2024. The forthcoming accounts will show revenue returning to pre-Covid levels, decreasing from £94.8 million to £78.4 million. Gross margin improved by 60 basis points, reaching 46.5 percent.
Looking ahead to the 2024/25 financial year, Barker and Stonehouse has reported a £3 million gain from the sale of its former Newcastle store, which was sold for approximately £5 million after the end of the 2023/24 financial year. This sale has strengthened the company's cash reserves, which dropped to £3.1 million at March 31, 2024, compared to £6.8 million in the previous year. The lower reserves were attributed to a £5 million investment in the new Metro Centre, Gateshead store.
Net assets have increased to £39.3 million (2023: £38.8 million) for Barker and Stonehouse, which operates large stores across the North East, Yorkshire, East Midlands, and South East regions. The company continues to expand, with a second concession at Bentalls Kingston.
Barker and Stonehouse remains focused on leveraging its operational improvements and investments to strengthen its position in the competitive furniture market.
Source: www.thefurnishingreport.com
More information: www.barkerandstonehouse.co.uk