Scottish independent furniture retailer Sterling Furniture Group has reported sales of just over £50m as losses reached almost £4m.

According to its latest filed accounts for the year ended 31 August 2024, total sales were £50.5m, down from £83.6m in 2023 – although this was against a comparative 18-month period. Pre-tax losses resulted at £3.9m.

Stated within its report, the company said: “The year under review was one of significant challenge for Sterling Furniture Group. In anticipation of an ambitious growth strategy, overheads increased significantly in the middle and latter part of the year and coupled with high inflation and weaker customer demand, this resulted in a pre-tax loss.

“Leadership changes followed the end of the reporting period. Bernard Dunn was appointed Non-Executive Chair in October 2024. John Pattison and Kenny Barclay, who served as CEO and CFO during the financial year, left the group board, and the business shortly thereafter. Stewart Robertson was appointed Chief Executive in December 2024. Malcolm Walker, a retail industry veteran, joined Sterling as a group board advisor in early 2025, and assumed responsibility for buying and merchandising.

“Following these changes, strategic decisions were taken by the current board to re-focus the business on its strengths, to reduce costs, continue to improve and invest in our product range, and ensure that the company was in a stable and strong position to meet the challenges ahead.

“The continued involvement of the founding family as shareholder directors reinforces their long-term commitment to the business and its future direction. “FY25 is expected to remain challenging due to the impact of an inflated cost base, government changes to minimum wage levels and employers NIC contributions, and the demanding economic conditions in the retail sector. However, with operational changes now in place, the Group is well positioned for recovery.”