Office furniture firm earmarks profitability return following restructure

Manufacturer and distributor of office furniture across the corporate, health, education and retail sectors, Southernsbroadstock, has reported a growth in sales alongside narrowing losses.

According to its latest filed accounts for the year ended 30 June 2023, total sales rose 8.1% to £25.2m from £23.3m in 2022.

Pre-tax losses narrowed to £1.3m from £1.9m recorded in the previous year.

Stated within its report, the company said that growth was down to both its key university and public sector markets performing well, while its restructure, including the implementation of a new leadership team, has also been a catalyst for improved performance.

As detailed in its previous set of accounts, the business underwent a review and restructure to secure the long-term funding and a solid balance sheet platform to capitalise on future growth opportunities in the office furniture supply sector. 

This included the acquisition by Broadstock Holdings Limited – which also acquired SID 2002 Realisations Limited and Ralph Capper Interiors Limited – to create a newly formed group structure, putting in place long-term funding from Tosca Debt Capital LLP, the majority shareholder, and Shawbrook Bank.

“Whilst the business made an operating loss, this was within management’s expectations for the year,” the company added, with such costs relating to the restructuring outlined above.

“With the companies increased orderbook and the complete operational restructure, the directors are confident that FY24 will see a return to profitability for the business.”

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