Flooring retail and wholesale business’ grow turnover

Flooring wholesaler Kellars has reported a growth in sales. According to its latest filed accounts for the year ended 31 July 2022, total sales rose 30.9% to £31.4m from £24m in 2021.

EBITDA stood at £897,000 for the year, while pre-tax profit resulted at £1,748, down from £51,000 recorded in the previous year.

Stated within its report, the company said it started the year with much higher expenses due to growth in the prior year. The business underwent a restructure to reduce expenditure, while at the same time continued to deliver sales growth.

This restructure included a reduction in warehouse space and allowed the business to become more efficient with stock holding, reducing by 36%. This is expected to drop further by 25% by the end of the first quarter of 2022/23 financial year, all while continuing to increase sales.

“Following the successful launch of our Rugby Depot, we have seen sales in this new area grow 66% in the year. Whilst still anticipating a further 20+% growth from this newer sales area in the next year.

“To facilitate this continued growth, we have invested significantly in our point-of-sale portfolio. We expect our normal sales to grow a further 20% to £36m next FY,” the business added.

Meanwhile, flooring retailer Flooring Superstore also reported a growth in sales over the same period, up by 10.8% to £55m from £49.7m in 2021.

EBITDA stood at a loss of £2.7m for the year, while pre-tax losses resulted at £6.4m, down from a profit of £1.8m recorded in the previous year.

Stated within its report, the company said it continued to rollout its store expansion during the period and operated 42 stores at the year end.

“Although the business has continued to increase sales year-on-year due to the programme of store openings, significant cost pressures were also experienced and the company has recorded a loss for the year,” the company said.

“In order to preserve working capital and change the structure of the business to bring it back to profitability, the company has taken measures to reduce costs. This includes the disposal of the Northampton warehouse and associated assets for £2.6m, operational changes and significantly reduction in headcount. The company has recognised a non cash exceptional charge of £853,000 in relation to the closure of the warehouse.”

Both Kellars and Flooring Superstore are part of the same group, owned by J Maguire Holdings Limited.

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