Upholstered furniture retailer Sofa.com has reported a huge profit as turnover rises for a fourth successive year.
According to its latest results for the year ended 29 February 2016, total sales grew by 5.2% to £23.9m from £22.7m in 2015.
Gross profit also registered an uptick by 8.6% to £13.8m from £12.7m, whilst operating profit jumped 465.3% to £1.6m from £283,376 over the same period.
Profit the year swelled into positive territory to £2.3m, significantly improved from its recorded loss of £742,305 in 2015.
During the year under review, Sofa.com indicated that its new showrooms were performing well as it remains on course with its expansion plan, whilst a ‘refined’ product range ‘significantly’ boosted gross profit margins to 57.6% from 56.1% last year.
Sofa.com said within its report that its manufacturing facility near Poznan, which opened back in September 2014, is expected to ‘reach optimum utilisation’ during the financial year to 28 February 2017, which is anticipated to ‘contribute significantly to group profits’ moving forward.
As well as investing in facilities, Sofa.com has invested in personnel, with key appointments in its marketing, finance and manufacturing teams, whilst adding further senior appointments since the year end in its ecommerce and product departments.
Looking ahead, Sofa.com said that trading momentum has continued in the current year and has more recently revealed that it plans to open a new pop-up showroom in Brighton on Church Street, adding to its existing store portfolio of six.