Oak Furnitureland battles rising costs as sales cut
Oak Furnitureland remains in the red as a catalogue of issues impacted its sales during its latest financial year.
The Swindon-headquartered retailer has revealed its revenue fell by 17 per cent to £236m in the 12 months to the end of June 2024 because of “a soft market, the Red Sea disruption and the subsequent impact on freight and inflation costs”.
Oak Furnitureland added that its operating loss reduced from £15.4m to £12.4m “driven by the diverse product pipeline and focus on enhancing the online and showroom estate”.
The company also said it had achieved “Significant strategic and operational progress” despite a “challenging market backdrop”.
Oak Furnitureland secured an extra £10m in funding and £47.8m in a debt for equity swap in June 2024.
The business said the move more than halved its debt and strengthened its balance sheet.
The retailer also confirmed that its pre-tax loss was cut from £31.9m for the 12 months to 30 June, 2023, to £17.1m.
The firm’s full accounts are expected to be filed with Companies House in the coming days.
Oak Furnitureland boss hails ‘resilient’ year
Oak Furnitureland’s chief executive, Alex Fisher, said: “Against a challenging market backdrop, with softer volumes and higher inflation, Oak Furnitureland delivered a resilient financial performance.
“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.
“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.
“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.
“I’d like to take this opportunity to thank our teams for their hard work and continued dedication.
“None of this would be possible without their support and I am excited about what we can achieve together in the year ahead.”
On its trading during its current financial year, the business said it has achieved positive LFL performance and consecutive months of market share gain.
Oak Furnitureland was saved from the edge of administration in June 2020 when it was acquired by hedge fund Davidson Kempner Capital Management, saving 1,491 jobs.