‘Exciting times ahead’ for Sterling Group
High-profile Scottish home furnishing specialist Sterling Furniture Group has outlined its positive outlook in its 50th anniversary year after seeing turnover grow by more than 50 per cent, but profit almost wiped out amid a troubled economic backdrop.
The business, famously based in Tillicoultry near Stirling, has outlined the “prompt and decisive action” it has taken under new leadership, including senior hires of former senior executives at Rangers Football Club and defunct Scottish housebuilder Stewart Milne Group.
The group has today published its accounts for the 18-month period ending August 2023, which it characterises as a “challenging period when trading was adversely hit by the combined impacts of reduced consumer confidence post-pandemic and due to the cost-of-living crisis, as well as the ongoing instability of the geopolitical situation and its effects on the supply chain”.
Turnover grew to about £83.7 million from £55.5m, while pre-tax profits shrank drastically to about £44,000 from £4.2m, with the business noting that the prior period incorporated the end of Covid19-related reliefs such as furlough and non-domestic rates support.
In its accounts, Sterling Furniture Group said: “The material decline in profitability for the period is also reflective of the historic lack of action taken to address the cost base of the business, given reduced sales revenues and inflationary cost pressures.”
Founded in 1973 by George Knowles who saw the growing popularity of out-of-town retail developments in the US, the firm was started with the conversion of an old mill in Tillicoultry. It last year appointed industry veteran john pat ti son as its chief executive, and said he has since taking up the role in August 2023 “spearheaded a new direction of travel for the business”.
Measures he has implemented as part of his “ambitious” plans for the years ahead include securing a £10m funding facility from banking partner Royal Bank of Scotland, and targeting new stores across the group, starting with a 50,000-squarefoot Sterling Home store at Hillington in Glasgow that is expected to open by the end of 2024. The group has in fact been powering ahead with its rebrand to Sterling Home.
Pattison has also appointed four directors, including Kenny Barclay in the role of finance chief, having held the same post at Rangers Football Club, and Matt Bonar as IT director, an area he previously led at the Stewart Milne Group that folded at the start of this year. They join Knowles family members Euan and Murray Graham, who sit on the group and executive boards, and George Smith Knowles, who sits on the group board.
The CEO said: “It’s undoubtedly been a challenging period, but I firmly believe that there are exciting times ahead for Sterling.”