Bensons for Beds: ‘It would have been easy for staff to lose heart’
Bensons for Beds has admitted it “would have been easy” for its employees to “lose heart” during its latest financial year which saw the chain battle a worsening retail environment.
The Lancashire-headquartered business paid tribute to its more than 1,800 members of staff for what it called a “strong set of results”.
Those results, for the year to 28 September, 2024, show Bensons for Beds’ revenue dipped from £257.4m to £256.3m and its pre-tax loss widen from £19.9m to £22m.
New accounts filed with Companies House also show that its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) went from a profit of £1.6m to a loss of £900,000 in the year.
The company said “given the market headwinds and inflationary cost pressures, which were mitigated through management action, this was a resilient result”.
It added that its pre-tax losses included £8.8m of interest, £5.6m of depreciation and IFRS charges of £4.4m.
Bensons for Beds is owned by private equity firm Alteri Investors, which itself is backed by funds managed by affiliates of Apollo Global Management.
Carpetright stores rescued by Bensons for Beds
The results come after a number of Carpetright stores were snapped up by Bensons for Beds following the firm’s collapse in July last year.
Carpetright was rescued out of administration a year go but with the loss more than 1,500 jobs.
Before it collapsed, Carpetright ran around 270 stores across the UK and employed around 1,800 people.
At the time, Bensons for Beds chief executive Nick Collard said the move to acquire the Carpetright stores would help it grow its own estate to more than 200 “over the next few years”.
In statement signed off by the board, chairman Ian Shepherd said: “The external environment has continued to be challenging.
“Although it has been a more stable period in terms of key macro-economic indicators, inflation remained high in the early part of the period and consumer demand remained subdued throughout.
“The clearest evidence of this was that footfall into stores has continued to be consistently down year over year, compounding similar decreases in the prior period.”
‘A pleasing result in a challenging market’
Bensons for Beds’ chairman added: “In the previous period’s report, we highlighted the importance of focussing on controllable KPIs [key performance indicators] when in a difficult market and this has continued to be a major focus of the business throughout the current period.
“I am pleased to say that sales conversion rates and average transaction values have grown to new highs while sustaining strong customer services levels and improved operational performance throughout the period, a great testament to the hard work delivered by colleagues across the whole business.
“The ultimate measure of success is, of course, in financial performance.
“Although profit levels have been impacted slightly by a shorter 52-week reporting period compared to 53 weeks in the prior period, revenues and other key financial indicators showed continued positive development, representing a pleasing result in a challenging market.”
Retailer targets return to profit amid ‘tricky’ times
On Bensons for Beds’ future, Shepard said: “The management team in the business have used this period not only to drive the current period performance described above but also to reshape the strategy of the business for the future to ensure that we continue to take market share and take the improved financial delivery and return to profitability which these accounts show still further.”
He added: “The board continues to be humbled by the amazing colleagues we work with.
“With the challenges we began the year with, and in the continuing tricky external environment, it would have been easy to lose heart, but our colleagues have not only delivered the strong set of results we publish today but they have done so with energy, vigour, humour and commitment. As a board, we are indebted to them.”