Furniture retailer Oak Furniture Superstore has achieved impressive sales of nearly £20m in its first year of trading, despite facing financial challenges. According to the company's accounts for the financial year ending 31 January 2024, total sales reached £18.2m, although the retailer incurred pre-tax losses amounting to £5.9m.
Photo: Oak Furniture Superstore.
The company, trading as Moreham Wood Limited (MWL), was established in January 2023, taking over the trade and assets of Mark Harris Furniture Limited (MHF) in February 2023. MHF had entered administration earlier in the year due to legacy contingent liabilities that became evident to shareholders. Following this, MWL was acquired by Quercy Limited, and a new management team was brought in to steer the business towards a more sustainable future. This team secured new financing from banks and shareholders, while maintaining relationships with key stakeholders essential for the group's continued success.
In its report, MWL stated that the brand was founded with the goal of providing high-quality, durable furniture at an affordable price by operating as an "online first" business model. The company relies on a lean outsourced operating model, partnering only with top-quality suppliers and aiming to deliver excellent customer service. Despite the disruptions caused by the administration process, including lost sales time and a restricted supply chain, MWL's directors were satisfied with the £18.3m in sales, which met their expectations for the first financial year.
The company also acknowledged that the £5.8m operating loss was expected, though directors emphasised that this figure did not fully represent the underlying potential of the business. The financial report highlighted the significant one-off costs incurred during the year due to the challenges faced early on. MWL closed the financial year with cash and cash equivalents of £0.72m, in line with its projections.
MWL also invested significantly during the year, expanding its product portfolio, enhancing its organisational structure, and streamlining its internal processes and sales channels to support long-term growth. While the company experienced a challenging start to its operations, it remains optimistic about its future prospects, with plans to continue building upon its initial achievements and improve its market position moving forward.
Despite the early setbacks, Oak Furniture Superstore's performance in its first year of trading illustrates the potential for growth within the competitive furniture retail market.
Source: www.bigfurnituregroup.com