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Bradbeers' Hedge End furniture store
Underlying profits advanced for South Coast independent retailer Bradbeers in a year that saw it invest heavily in property and consolidate borrowing.

 

Operating profit was up 11 percent to £1.55 million for the family-owned business, which trades from two furniture stores and two department stores across three towns; Hedge End, Romsey and New Milton.


Turnover was up despite disruption caused by the refurbishment at two of its stores, the retailer said, including New Milton where the remodelled store is "showing strong year-on-year growth."


Revenue advanced 0.7 percent to £16.9 million in the year to January 31, with retail sales up 0.2 percent to £16 million. The business' other turnover is derived from furniture rentals, storage income and removals, while it also booked other operating income from rent on its property estate.


The retailer agreed a new £8.25 million loan during the period as it invested in property and consolidated borrowing last year.


The new facility helped pay back a prior loan and fund the acquisition of strategic properties worth £3.86 million, the lion's share of which was paid to acquire the former Co-Op store opposite its New Milton department store, which it plans to develop (see related).


Post balance sheet, in March and April this year, it has spent a further £650,000 to acquire further properties, financed out of cashflow.


Statutory net income for 2017–18 was down 11 percent to £1.51 million. That was because it booked a fair value gain of £944,023 on property in 2016–17, compared with a further £450,000 in the latest reported period.


Total equity in the business advanced to £13.7 million (2017: £12.6m).


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— Sales up as Bradbeers invests £3m buying former Co-op store