Profits and sales at bed and mattress retailer Dreams soared in 2016, ending its third and final year of its turnaround plan on a high note.
In its unaudited results for the full-year period ending December 24, Dreams’ sales surged by 20 per cent to £280 million, compared to 2015’s figure of £234 million.
Like-for-likes also had an uplift of 14.1 per cent, while underlying pre-exceptional EBITDA soared by 87 per cent to £40 million and profit before tax skyrocketed by a whopping 136 per cent to £32 million.
The results are a far cry from the dire situation the retailer was in in 2013, when it verged on collapse and was bought out of administration by current owners Sun European Partners.
Not only were 1600 jobs saved, but by 2016 the retailer’s finances recovered completely after it paid off its remaining debt.
Also in its 2016 financial year, Dreams opened 14 new stores and now has a total of 181 shops in its estate. Of those stores, three were located and 10 underwent refurbishment.
Meanwhile, ecommerce sales went by 34 per cent as 16.7 million people visited Dreams’ website last year.
Chief executive Mike Logue said 2016 was a “pivotal” year for the retailer as it built on the last years of growth.
“Our significant investment, matched by the incredible efforts of our 1850 colleagues across the UK in our factory, our 181 shops and our delivery centres have enabled us to achieve these record results,” he said.
He added: “Whilst potential future challenges to the UK consumer economy are well documented, we are confident that we will continue to successfully execute our strategy and that it will be another year of significant progress for Dreams.”
In January, reported emerged that Dreams could go up for sale for £400 million now that it has financially recovered after near-collapse in 2013.