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The private-equity backed furniture group behind brands including Spaceslide wardrobes and Optiplan Kitchens has re-engineered its cost base after registering a bigger loss last year.

 

New accounts for HD Holdings II, which consolidates the accounts of Sheffield based manufacturer Home Décor GB and others, disclose costs savings of £1.5 million in 2017 and another £2.2 million in the period since.


It is part of efforts to 'rightsize' the business and follows the group's net loss widening to £4.3 million in 2017, from £3.2 million the year before.


EBITDA moved from a gain of £989,000 in 2016 to a loss of £97,000 last year, with its net result including a number of non-cash costs — chiefly goodwill amortisation — that reflect its buy-and-build strategy of recent years.


Besides Optiplan, the Cerberus Capital backed group has also bought kitchen maker Manor Cabinets and bedroom furniture outfit Portico (Midlands) in recent years.


A first full-year inclusion of Optiplan Kitchens, bought in May 2016, meant group revenue advanced 13 percent to £43.9 million, but this masked underlying declines.


Home Décor GB, the bedroom business operating the Spaceslide brand and the largest business unit in the group, posted sales down 8.4 percent to £27.4 million while underlying sales in its kitchens business also fell, the company said.


At the end of January 2018, its principal shareholder provided a cash loan of £1 million to ensure adequate cash resources to grow and restructure the group.

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