An upmarket North East furniture retailer has signalled a rebound from the UK's cost-of-living squeeze after its latest accounts revealed a welcome rise in both sales and profitability.
Financial Figures Show Positive Turnaround
Family-run firm Barker and Stonehouse, headquartered in Stockton, has released its results for the year ending 30 March. The figures show a clear recovery, with turnover increasing from £78.4 million to £81.2 million year-on-year. This follows two consecutive years of declining sales for the retailer.
More strikingly, the company's operating profits saw a substantial surge, jumping from £913,000 to £3.9 million over the same period. The accounts note that turnover grew by 3.6% as income began to recover from the pressures of the cost-of-living crisis.
Store Strategy and Operational Shifts
The financial year included the significant sale of its standalone Newcastle city centre store, which is now being converted into student accommodation. This disposal generated a £3.3 million profit on fixed assets and contributed to a pre-tax profit of £3.1 million.
Rather than leaving the city, the retailer opened a concession within the Fenwick department store on Northumberland Street. This move proved successful, leading the company to double its floorspace there in autumn 2024. Building on this model, Barker and Stonehouse has just opened a similar concession in the independent Jarrolds department store in Norwich in December 2025.
Investing in Technology and Online Growth
The accounts also highlight significant internal investment aimed at driving future efficiency. The implementation of the Microsoft Business Central ERP system was completed during the year. The company reports that this system, alongside AI integration, is now delivering real operational benefits.
Further investment has been channelled into enhancing its online offering and third-party platforms. The firm's financial health improved markedly, with cash reserves rising to £4.4 million from £3.1 million, while borrowings were reduced from £9.8 million to £7.4 million.
Steady Operations and Environmental Commitment
Founded in 1946 and still led by the Barker family, the business now operates from 18 stores nationwide, including locations in Gateshead, Hull, and Knaresborough. Its workforce saw a slight reduction, standing at 386 employees at the year-end.
The report also underscored the company's ongoing environmental initiatives. It helped found the Trees4Trees project in Indonesia, which has supported the planting of over three million trees and helped more than 23,000 families earn a sustainable income through environmental stewardship.
The directors stated that the company has continued to trade profitably since the year-end, with both turnover and gross margin increasing further.
