High-end furniture retailer Barker and Stonehouse has reported a significant drop in turnover and profits during what it described as a “difficult” year.
The cost-of-living crisis has had an impact on customer spending, which is reflected in the new accounts for the Teesside-based company. With a presence in 18 stores and franchises across the UK, including Teesside Park, and an outlet store at Middlesbrough’s Cannon Park. Barker and Stonehouse’s latest financial figures indicate a decrease in turnover of 17%, from £94.8m to £78.4m for the year ending 31 March 2024.
Profits before tax took a dip from £3.03m to £703,000, with operating profits also sliding down from £3.4m to £913,000. Despite these setbacks, the directors’ reports show an ongoing commitment to investment.
The previous year also saw the launch of their new £5m Gateshead store at the Metro Retail Park, celebrated by actress Joanna Lumley.
Though the number of full-time equivalent employees has dropped from 437 to 376 by the year’s end, according to the report approved by finance director Peter Soakell, the company faced rising costs that affected its performance. Additionally, the closure of its Newcastle store was noted, making room for expanded franchise operations within Fenwick’s prominent department store in the city centre, reports Business Live.
The company reported: “Turnover decreased by 17.3% as the full effect of post Covid tapering, the ‘cost-of-living crisis’, and subsequent rise in interest rates resulted in a significant reduction in disposable incomes. Profit before tax decreased to £0.7m due to the significant drop in turnover reflecting the difficult trading conditions.
“Cash at the year-end was £3.1 down from £6.8m the previous year as the company continued to invest in fixed assets. The company opened its new standalone freehold store at the Metrocentre in Gateshead in April 2023. A new website went live in October 2022 and is now trading well.
“In July 2024 the company sold its Newcastle city centre store for over £5m, being a profit of over £3m. The company then further consolidated its business arrangement with Fenwick Ltd and doubled the floorspace at Fenwick Newcastle in the autumn of 2024. The company is trading profitably since the year end with an increased turnover and gross margin.”
The accounts also highlight Barker and Stonehouse’s ongoing commitment to sustainability, noting that it has been investing in a carbon and energy reduction programme for the past 16 years. It minimises packaging use and recycles over 90% of what it does use.
This year, the firm is set to acquire its first hydrogen-powered commercial vehicle, with plans to expand the use of such vehicles throughout the company.
The company stated: “The company is one of the founding partners in an Indonesian reforestation project, Trees4Trees, started over 15 years ago. The programme works with universities, farmers, and landowners to ensure a virtuous circle of education, commerce, and community benefits. To date the company has planted over three million trees helping over 23,000 families to build a better life for themselves by earning a sustainable income and understanding the part they play in environmental stewardship. The project is estimated to have captured over half a million tonnes of carbon from the earth’s atmosphere.”
In November, Barker and Stonehouse joined 70 UK retailers in signing a letter to Chancellor Rachel Reeves, cautioning that the employers’ National Insurance rise announced in October’s Budget would lead to job losses and price increases. Other North East retailers, including Greggs and Fenwick, also signed the letter.
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