Made says sales, customer numbers and repeat orders grew strongly in its latest full-year – but pre-tax losses widened as supply chain costs rose. At the same time, supply chain delays had a knock on effect on customer deliveries.
The furniture and homewares pureplay says it has been quicker to adapt than many as it expands is warehousing and logistics capacity, and it has already been able to reduce customer lease times. That, it says, has put it in a “more resilient position than ever before”.
Made has reported revenue of £371.9m in the year to December 31 2021 in its first full year as a listed company. That’s 50% up on the previous year. But at the bottom line it reported a pre-tax loss of £31.4m, more than double last year’s £14.6m loss. One-off costs reflected in the figure included IPO related charges of £5.3m.
Supply chain challenges that built up during the pandemic mean that at year end Made still had deferred revenue of £56m from orders yet to be fulfilled – and the rising cost of freight has dented profitability. The company has expanded its warehousing and logistics capacity in order to improve its lead times. Its total warehouse capacity has expanded to 1.1m sq ft and will expand again in 2022.
Customer numbers have risen by 26% over the year to 1.3m, while 44% of orders were repeat orders. Average order values of £246 were 8% up on the previous year.
The furniture platform, which was founded in 2010 to link makers directly to customers, says in today’s statement that it is on track to grow sales to £1.2bn and beyond by 2025, “as the large and underpenetrated furniture and homeware market shifts online and we accelerate investment into our core customer proposition development – range expansion, industry leading lead-times and international expansion.
Nicola Thompson – previously chief operating officer of the business – has been newly confirmed as chief executive of Made, having taken on the role on an interim basis following Philippe Chainieux’s decision in February to step down from the role for family reasons. She says in today’s statement: “Made has an unrivalled understanding of its digital native customer base and this has enabled us to upgrade our proposition and significantly increase market share. We have a clear strategy, talented team and multiple levers to drive growth in the years ahead. I look forward to working with the very experienced board and the team at Made as we continue to listen to our customers’ needs and aspirations in order to help them curate the vision they have for their homes.”
Susanne Given, chair of Made, says: “I am proud of the excellent growth and strategic progress the business has delivered since its IPO. We have a strong strategic plan in place to drive further and continuous growth. We will build on Made’s position as the leading digital destination for home through investing in the customer experience, the further development of our curated homewares range and growing the brand internationally. The strength of the brand and the management team combined with its strong cash position means Made is uniquely placed to act on the opportunities ahead.”
Made’s targets for the next five years include 100% recycled or recyclable packaging, 100% sustainably sourced cotton and polyester and 100% sustainably sourced, traceable timber by 2025. It also plans to launch a Give Away and a Take Back programme in coming years.
“We believe our approach aligns strongly with the core values of our predominantly millennial customer base, who are increasingly focused on transparency, sustainability, and integrity to inform their brand choice and purchasing decisions,” says Thompson in today’s statement. “Our prioritisation of sustainability and control of our supply chain distinguishes us from our competitors and positions us well to handle expected future changes in regulations and environmental standards around sustainability.”
Made, which is ranked Top250 in RXUK Top500 research, sells online to eight European markets including its UK home market, and through seven showrooms, including flagships in London and Paris.