From the conception of Furniture Village in 1989, we always wanted a business where everyone who worked within it could share in the rewards of their efforts, over and above the standard practice of commission and performance related bonuses.
With the share buyback in October 2022 resulting in the business becoming 100% family owned, we were able to implement a company wide profit-sharing scheme known as the ‘Family Partnership’.
Given the results produced in 22/23, we were very pleased to be able to share approximately £1.25 million with all eligible employees across the business (around1000) in the inaugural profit share scheme payment, which was actioned in August last year.
Marisa Keenan joined the business 25 years ago and works at our Group Head Office in Slough. She started in the accounts team before moving into marketing as our Advertising Executive and was later promoted to Campaign Manager. She said,
“I am proud to work for Furniture Village, a family run business with family values at its heart. I am thrilled that our individual and collective hard work, commitment and dedication is being recognised with the employee profit scheme. This motivates the whole team and drives us to always perform at our best, which plays an important role in the continued success of the business.”
Whilst we are all aware of the economic headwinds that face retail in general and big ticket in particular over this past year, there will always be a market for good quality, good value, home furnishings, presented well and served right. We are therefore very proud to announce improved results for the year ended June 2024.
Our order intake last year was up some 3% on a ‘like for like’ basis, which together with improved margins and strong cost controls enabled us to produce an even stronger trading performance last year with profits in the order of £12.35 million, a record year outside the immediate post Covid period.
Whilst the troubles in the Middle East and Suez in particular caused a degree of disruption to deliveries, our supply chain and fulfilment teams were able to work smartly to contain the disruption to a minimum.
These results far exceeded the prior year and the budget we set ourselves and the additional profit generated has enabled us to double the amount paid out in our Family Partnership Profit Share scheme this year to around 1050 of our employees of circa £2.25 million!
Profit before Family Partnership - £12.35 million
Family Partnership profit share - £2.25 million
Profit before tax - £10.1 million
Cash - £40.0 million
“Whilst these results are as yet un-audited, given the integrity of our financial reporting over the years, we have every confidence that our reported results will mirror these.” Eamon Wynne, CFO.
Peter Harrison, Chairman commented:
“Improving performance is not a God-given-right, especially in the big-ticket sector, which is often more sensitive to economic and political fluctuations. However, our commitment to taking care of our customers and, most importantly, our own people has proven invaluable during these uncertain times. We firmly believe in bringing our people along with us, and these results are a testament to their extraordinary efforts, for which we are immensely grateful. The same goes for all of our highly valued suppliers whom themselves have battled against the same difficult trading conditions as a result of various economic and political challenges.”
Charlie Harrison, Managing Director said:
"Once again, we have demonstrated that it is possible to be profitable and cash generative yet still ‘do it properly’, as we say. We have no borrowings and no external shareholders, but sufficient funds to continue to grow organically by investing in new and existing stores as well as online."
"Throughout the years we have been very considered and deliberate in our expansion strategy and our plans are to continue to grow in a sensible, measured way, taking advantage of the right opportunities when they become available."
"We have recently announced that we will be opening our first store in Edinburgh, Scotland on Boxing Day 2024 – swiftly followed by three or four more. Fully recognising the immense opportunities presented by ever improving technology, we are also investing substantially in a new ERP system which will be up and running in the next 18 to 24 months and we are similarly very grateful to Sci>Net and many of our own highly skilled personnel for helping us to bring home this project successfully.”
Thank you, Peter and Charlie Harrison on behalf of the Board of Furniture Village Furniture Village Colchester store, opened December 2022