The UK division of Australian furniture group Nick Scali has reported a decline in sales as losses widened.
According to its latest filed accounts for the year ended 31 March 2025, total sales fell 27.5% to £25.3m from £34.9m in 2024.
Pre-tax losses resulted at £8m, widening from a loss of £3.5m recorded in the previous year.
Stated within its report, the company said: “The business was acquired during the first quarter of the financial year (previously operating as Anglia Home Furnishings Ltd, trading as Fabb Furniture).
“The Company continued to operate a furniture retailer and whilst previously has traded solely under the Fabb Furniture brand, commenced a program to rebrand and refurbish the Fabb stores to Nick Scali stores.
“Revenue for the business was £25m in FY25 with performance impacted by clearance of the legacy Fabb product range and the refurbishment program, which required prolonged store closures.
“During the Financial Year, the Peterborough & Gloucester stores were closed at the end of their leases as it was not deemed suitable to rebrand to Nick Scali, with the current UK network at 20 showrooms.
“Nick Scali Limited’s acquisition strategy is to implement its proven successful business model into the UK, leveraging the supplier network and differentiated high quality product range.
“During the year, significant progress was made in delivering the UK strategy, including introduction of Nick Scali product ranges and pricing strategies which delivered a substantial improvement in gross margin, reaching 56% for the year end.
“Prior year margin was at 51%. In addition, the business reduced overhead costs, transitioned to a 3PL distribution centre and enhanced retail leadership and sales team effectiveness. One-off restructuring and integration expenses of £4.8m were incurred in FY25.
“Net UK loss after tax for the year was £8m however this is not indicative of the underlying trading performance due to acquisition accounting, restructuring and integration expenses incurred during the period.
“These improvements highlight the potential of the UK market and reinforce confidence in the acquisition growth strategy of the parent company.
“The store rebranding and refurbishment program is continuing and is expected to be completed by the end of FY26. This will continue to cause disruption to trade as many stores are closed for extended periods due to the refurbishment.
“The company remains focused on leveraging cost synergies, strengthening brand awareness and enhancing the in-store sales experience.”
