The Hometime Group has experienced a 12% increase in revenue, reaching £21.5 million for the year ending April 28, 2024. The growth is attributed to its expansion into Ireland, where it opened three new stores, including locations in Blanchardstown, Galway, and Limerick.
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The Hometime Group, which operates both Dreams stores selling beds and Sofatime outlets offering upholstery, has been successfully broadening its footprint. In addition to the three new Irish stores, it operates eight stores in Northern Ireland, with two locations in Ireland co-located with Sofatime.
While revenue growth has been strong, rising costs and narrower margins have affected profits, which fell by 27% to £766,601. The group's gross margin decreased by 70 basis points to 50.4%. However, the company's cash flow improved, largely due to a £1 million increase in current payables, mainly owed to unspecified creditors. The retailer's closing cash balance at the end of April stood at £2.83 million, up from £1.66 million the previous year.
Despite the profit decline, the group's net assets increased to £3 million, up from £2.24 million in 2023. Capital expenditure also increased by around £500,000 as the retailer invested in store fixtures and fittings to support its expansion efforts.
Source: www.thefurnishingreport.com