harry corry co fasciaBedding and soft furnishings chain Harry Corry says its realigned cost base after agreeing its CVA earlier this year has put it on track to return to profit in 2015–16.

The circa 50 store Scotland, Ireland and Northern Ireland retailer agreed the CVA with creditors in May, after losses had increased in the year to end February.

Just filed accounts show pre-tax losses widened to £628,867 (2014: £364,395) despite turnover increasing 0.4 per cent to £38.6m for the retailer, which sells bedding and soft furnishings as well as occasional furniture.

Its earnings deficit was exacerbated by a 50 basis point decline in gross margin to 59.1 per cent and higher distribution costs, both as a proportion of sales but also in absolute terms, by £592,496. Its total loss for the year was over £1m as a result of foreign exchange on the retranslation of foreign operations.

Cash increased to £2.6m (2014: £1.7m), with there being an increase in the amount owed to creditors — up from £877,653 in 2013–14 to £2.66m — at the balance sheet dateline. Net debt stood at £424.364 (2014: £1.45m) at 28th February 2015.

Its CVA should, in combination with steps taken to control costs, result in a significant reduction in overhead and a return to profit in the current financial year, directors said.

Related: Creditors back furnishings chain Harry Corry CVA plan

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