Direct-to-consumer retailer sees sales fall but profit rise

Direct-to-consumer retailer WoolOvers Group has reported a decline in sales but a growth in profit.

According to its latest filed accounts for the year ended 1 April 2023, total sales fell 15.8% to £36.6m from £43.5m in 2022.

Pre-tax profit resulted at £2.5m, up from £1.5m recorded the previous year.

Stated within its report, WoolOvers, which trades via catalogues and eCommerce websites across a number of categories including home furnishings, said: “Overall, the Company reported a profit before tax of £2.51m, an increase on the prior year profit, which represents increased investment in growth and revenue, while maintaining underlying EBITDA after adjusting for one off restructuring costs.

“Revenues in the period decreased driven by a profitability approach taken through the year and so sales reduced. The gross margin % was 38.4%, however gross profit increased by 9.2% to £14.1m in line with the profitability aim. Administrative expenses grew 15.9% to £8.5m. This reflects investment in the headcount to support the revenue growth.”

Back in March this year, the group acquired the business and assets of Scotts Limited, a privately-owned mail order and eCommerce business, in a pre-pack deal worth almost £3m. (Read more here).

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