Bed specialist Dreams reports tripled earnings, and sales up 19 per cent, after restructuring

William Turvill
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Dreams reported like-for-like sales up 19.4 per cent in 2015 (Source: Getty)

Dreams do come true for some. Bed specialist Dreams has reported a tripling in earnings, and sales up 19.4 per cent, in 2015.

The figures

The company reported earnings before interest, taxation, depreciation and amortisation (Ebitda) of £21.1m, up 207 per cent from £6.9m in 2014 . This figure was pre-exceptional items - including one-off and non-recurring costs involving refinancing and restructuring - as well as management fees and currency movement.

Read more: Beds retailer Dreams drafts in two former Jessops directors

Like-for-like sales were up 19.4 per cent year on year, compared with a 7.8 per cent growth in 2014.

And e-commerce sales were up 41 per cent, compared with 18 per cent growth the year before.

The company said underlying operating profit was £14.9m, up from £1.3m. And profit before tax was £13.1m, up from £0.4m.

Why it’s interesting

The company said these results were ahead of expectations under its 2014 three-year plan. The beds chain had to be bought out of administration in 2013.

Dreams said it had cost £5m to refurbish all of its stores, which now number 170 - up from 157 in 2014.

The company’s 100 home delivery vans have been replaced at a cost of £2m.

And its factory has also been refurbished and is now “making a significant contribution to the group’s overall profit”.

What Dreams said

Mike Logue, chief executive:

These strong results demonstrate the success of our strategic initiatives: continuing to manufacture and provide the highest quality products, broadening our brand appeal, resizing and re-furnishing our store estate, improving customer service and providing a seamless multi-channel proposition.

With a clear roadmap now in place for the next phase of the Dreams journey, and our desire to continue to improve everything that we do, we believe the opportunity is both exciting and significant. This, coupled with our outstanding team of colleagues, means that we look to the future with even greater confidence.

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