Dreams posts sales and profits growth for fifth consecutive year

Bed retailer Dreams has reported an increase in both sales and profits for the fifth consecutive year. In its full-year results for the year ending 24 december 2018, Dreams recorded a 2.9% increase in sales to £309m, up from £300m the previous year. Group profits before tax was also up 11.7% to £32.7m, up from £29.3m in 2017. Dreams also recorded “modest” like-for-like growth of 1.9% as it opened 17 new stores in the period, including three closures and three relocations, taking its total to 198. Online Dreams added following its transition to its new platform, the company experienced strong LFL results with October finishing +12%, November +15% and December +49%, along with its highest ever online trading day in December. Looking ahead Dreams said despite a “challenging UK retail environment”, it has had a “strong start to the year” and remains well-positioned to take advantage of further growth opportunities given its strong cash flow generation and zero debt. The company added it continues to prioritise and invest in its digital offering, while maintaining the ongoing refurbishment of its store portfolio, to ensure the “best possible customer experience, both in-store and online”. Mike Logue, CEO of Dreams, said: “2018 was a challenging year for the UK retail market. However, our results for the period demonstrate our unwavering commitment to make, sell and deliver the most comfortable beds across the UK. “We have remained focused on providing an excellent range of products at the right price point which, coupled with our healthy balance sheet, means that we have had the flexibility to adapt to market conditions. This approach has served us well throughout the year and has seen us continue to invest across both our online and physical store estate. As a result, we are proud to have delivered our fifth year of continued sales and profit growth.” He added: “I would like to take this opportunity to thank everyone at Dreams, across our factory, shops, distribution and support centres, for their dedication and tireless hard work. Looking ahead, the sector continues to face difficult market conditions, which have been well publicised, but our continued growth and investment means we are in a solid position at the start of 2019.”