Record results for bed retailer Dreams as owner looks for buyer
Bed retailer Dreams has reported a record set of results as its private equity owner continues to search for a buyer for the firm.
The company, which is owned by Sun Capital Partners, saw sales rise 20% to £280 million and pre-tax profit grow 136% to £32 million last year.
Dreams linked the growth to investment into store refurbishments and its Oldbury factory, where it manufactures over 200,000 mattresses and over 160,000 beds annually.
The 181-store chain collapsed into administration in 2013 before being bought by Sun, which has embarked on a successful turnaround in the face of rising online competition.
Sun is working with bankers at Rothschild to hunt for a buyer for Dreams, with an asking price set at around £400 million.
It is understood several US private equity firms have expressed early interest in the brand, although a sale is not likely to be agreed until later this year.
Speaking alongside the results, chief executive Mike Logue said he is undeterred by a potential slowdown in consumer spending.
He said: " 2016 was a pivotal year for Dreams, building on the last three years of growth.
"Whilst potential future challenges to the UK consumer economy are well documented, we are confident that we will continue to successfully execute our strategy and that it will be another year of significant progress for Dreams."