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WarrenEvansChelmsfordLondon and South East beds and mattress retailer Warren Evans says a bumper sales performance in the early part of 2015 has put it in line to return to profit this year.


The privately owned beds specialist, which also has its own manufacturing capability, said January to May sales were up 19 per cent on the same period in 2014.


Its accounts—signed off in June but only just filed at Companies House—said that its higher sales in combination with lower costs and a concurrent rise in gross margin meant it is on track to return to profit in the 12 months to end December 2015.


Warren Evans losses widened last year, with the company recording an EBITDA deficit of £1.1m (2013: £282,204) and a pre-tax loss of £1.9m (2013: £772,443).


That was despite sales improving by 11.4 per cent to £20.6m as it expanded its store footprint across London and the South East to 13 showrooms, up from nine previously operated.


The company said its 2014 loss included over £500,000 in one-off restructuring costs, which had subsequently helped it slash its monthly operating expenses.


Year-end cash declined to £837,297 (2013: £1.8m), mainly as a result of net capex totalling over £500,000 for a second consecutive period. Net funds fell to £330,481 (2013: £1.7m).