Oak Furnitureland has reported remaining in the red due to a multitude of challenges affecting its sales performance throughout its latest financial year.
The company, based in Swindon, disclosed a 17 per cent drop in revenue to £236m for the year ending June 2024, citing reasons such as "a soft market, the Red Sea disruption and the subsequent impact on freight and inflation costs", as reported by .
Despite these hurdles, Oak Furnitureland noted that its operating loss lessened from £15.4m to £12.4m, crediting this improvement to "driven by the diverse product pipeline and focus on enhancing the online and showroom estate".
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In the face of what it calls a "challenging market backdrop", Oak Furnitureland has pointed out that it managed to achieve "Significant strategic and operational progress."
The retailer boosted its financial position with an additional £10m in funding and undertook a debt for equity swap worth £47.8m in June 2024, actions which effectively reduced its debt by more than half and fortified its balance sheet.
Yet, the company has opted not to disclose its most recent pre-tax loss figure for the year. Previously, Oak Furnitureland posted a sizeable pre-tax loss of £31.9m for the year up to 30 June, 2023, after registering a profit of £484,000 the year before.
This return to profit came following a significant loss of almost £23m in the preceding year.
Detailed accounts of the firm's financial status are anticipated to be submitted to Companies House shortly. Meanwhile, the management of Oak Furnitureland has lauded the business's 'resilient' performance over the past year despite the financial struggles endured.
Oak Furnitureland boss hails 'resilient' year
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Alex Fisher, chief executive of Oak Furnitureland, has commented on the company's robust financial results despite a tough economic climate: "Against a challenging market backdrop, with softer volumes and higher inflation, Oak Furnitureland delivered a resilient financial performance."
He detailed the strides made over the year: "Throughout the year, we have made significant headway in driving operational efficiencies alongside enhancing our product proposition to serve the whole home and make our brand more accessible to even more customers."
Expressing pride in the strategic advances made, he added, "I am proud of the strategic progress we delivered in the period, with the successful trial and adoption of our competitive interest-free credit offer, which resulted in the business securing additional funding and equitisation."
According to Fisher, these steps have fortified the company's finances: "This has strengthened our balance sheet and together with continued investment in our brand platform, has driven market share gains and positive LFL [like-for-like] performance during the first half of FY25, putting us on a much firmer footing for the year ahead, with a clear plan to drive growth going forward."
The CEO also showed his appreciation for the staff: "I'd like to take this opportunity to thank our teams for their hard work and continued dedication."
He concluded by acknowledging the team's efforts as fundamental to success: "None of this would be possible without their support and I am excited about what we can achieve together in the year ahead."
The business also noted its positive like-for-like performance and consecutive months of market share gains this financial year.
In June 2020, Oak Furnitureland was rescued from the brink of administration by hedge fund Davidson Kempner Capital Management, a move that safeguarded 1,491 jobs.