Children’s furniture specialist Aspace says it won’t be profitable before next year after it made significant board changes and losses escalated in 2013–14.

The Warminster manufacturer and retailer — which has more than half a dozen stores across southern England — lost £1.1m before tax as sales declined 18 per cent to £8.6m in the year to end February. It posted a £481k pre-tax deficit the year before.

Its just filed results highlight the board departures in 2013 and 2014 of md Paul Cunningham and finance director Richard Amesbury-Page. Casper Williams, the sole shareholder in SourceC.com Ltd, which has provided funding for Aspace in the past, joined the Aspace board of directors.

In 2013–14, Aspace secured new loans of £850k, on top of £250k the prior year. Year-end net debt rose to £1.1m (2013: £386k) though in reviewing the year, directors said shareholders had subsequently decided to capitalise part of the loan funding in order to provide a stable and sustainable position.

The privately owned Wiltshire firm said the year hadn’t yielded the expected improvements from an earlier implemented strategic review, with a number of fundamental reporting issues having been identified which altered priorities.

Aspace added that its recovery plan had effectively been pushed back by a year, with a return to profit now expected in 2015–16.