Liverpool-based home furniture and décor interior design retailer Taskers has reported a decline in sales as well as widening losses.

According to its latest filed accounts for the year ended February 2024, total sales fell 10% to £13.5m from £15m in 2023.

Pre-tax losses resulted at £2.3m, widening from a loss of £1m recorded the previous year.

Stated within its report, the company said: “The economic climate continued to make trading difficult with the impacts from rising inflation and interest rates along with the ongoing cost-of-living crisis hitting consumer confidence. These pressures resulted in a fall in turnover of c.10% along with increased cost of sales due to significant increases in freight costs.

“Despite reducing wage costs by 10% along with other significant overheads, increasing interest rates affected a number of areas of cost that reduced the impact of these savings: Consumer finance costs increased by 140%; Bank charges by 35%; Loan Interest by 40%; and Credit card charges by 24%.

“The operating costs of Hunts Cross were significantly increased with high business rates and rent having a massive negative impact on the business’s liquidity and profitability. It was the opinion of the Directors that the profitable Aintree site along with our online offering would help ensure that the company could return to profit in the future without the additional financial pressures that an additional store brought.

“As a result, the Company made the decision to enter a CVA after this accounting period, the main impact of which was to close the loss making Hunts Cross site. This decision was considered to be in the best interests of our creditors and the business as a whole.

“In the months following the CVA being accepted by our creditors the Company has seen an increase in like for like sales and a significant reduction in overheads which is bringing the Company back to profitability and ensuring it meets its liabilities and legal obligations.

“These financial statements include a number of costs associated with the CVA and the associated write off of fixed assets following the closure of the Hunts Cross store. These amount to approximately £900,000 of overhead costs in these financial statements.

“Post Balance Sheet the company has sold land at its Wavertree site for a net £3m. The company used these funds to repay Bank debt including the repayment of two loans and the reduction in its Mortgage as well as clearing its overdraft. This will produce ongoing cash savings of approximately £669,000 p.a. and improve profitability by approximately £120,000. The company has renewed its facilities with the bank during this process and the company continues to receive excellent support from its banker HSBC.

“The company’s main objective going forward is to ensure that the company returns to profitably and whilst the economic outlook remained difficult during this financial period we are confident that this can be achieved.”