2017 was another bright year for Dreams
Sun Capital has already made good its investment in Dreams with the retailer's cash and profits generation in 2017 facilitating the repayment of another large chunk of shareholder debt.


New consolidated accounts reveal the High Wycombe headquartered retailer repaid £17.6 million of the remaining zero coupon bond from free cash flow last year, leaving under £1.0 million outstanding at the December 24, 2017 year-end.

Private equity firm Sun acquired Dreams out of administration in 2013, with the retailer's immediate holding company issuing a £53 million bond and the retailer taking on new bank debt.

Its complete turnaround since means the bond is now all but repaid, while its bank borrowings were cleared in 2015. It retains an undrawn credit facility north of £10 million.

Dreams disclosed selected financials back in March this year (see related). Its just-filed accounts expand upon the figures released at the time, and show net income jumped more than a fifth to £24.2 million. Sales advanced 7.7 percent to £290.3 million.

It moved to a net cash position of £11.4 million at its 2017 year-end, from having £11.1 million of net debt 12 months prior. Total equity advanced to £32 million (2016 £7.8m).

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