Bensons for Beds losses widen as market pressures persist

Bensons for Beds has reported widening losses of £22m for the year ended 28 September 2024, up from £19.9m the previous year, as it continues to face external market pressures and internal operational issues.

The group’s pre-tax loss included £8.8m in interest payments, £5.6m in depreciation, and £4.4m in International Financial Reporting Standards (IFRS) charges.

Revenue declined slightly to £256.3m, down from £257.5m in 2023. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also fell from profits of £1.6m to a £0.9m loss.

Despite the decline, the company described the outcome as “a resilient result” given inflationary cost pressures and wider economic headwinds, which it said had been mitigated by management action.

The outlook for the rest of its financial year remains “cautious” and “pragmatic”, citing subdued consumer sentiment and a continued slowdown in footfall, even as inflation begins to ease.

During the reporting period, the retailer expanded its footprint by opening new stand-alone stores and launching outlets in partnership with other retailers. 

It also acquired 17 former Carpetright stores and plans further expansion to “unlock the substantial economies of scale which exist in its operations”.

Bensons for Beds acquired Carpetright in July 2023 after the flooring retailer fell into administration.

The company stated that despite economic challenges, it is “well positioned” for further progress in the 2024–25 financial year.

Ian Shepherd, chairman, said: “As reported in the last financial period’s report, in FY22 the group had experienced a very challenging period, with both a tough external market environment and a series of internal operational challenges impacting our results.

“The board had acted decisively in responding to these challenges, appointing a new management team and resetting the strategic focus areas of the business to ensure that performance turned around. I am pleased to say that FY24 saw the continued progress of the group in response to those actions, despite significant market headwinds and inflationary pressures. The group is well positioned to continue progressing in FY25.”

He added: “The external environment has continued to be challenging. Although it has been a more stable period in terms of key macro-economic indicators, inflation remained high in the early part of the period and consumer demand remained subdued throughout. The clearest evidence of this was that footfall into stores has continued to be consistently down year over year, compounding similar decreases in the prior period.”