Oak Tree Mobility has described the last 18 months as a ‘turning point’ for the business as it revealed sales hit nearly £32m last year and the company experienced ‘fundamental changes’ which are designed to make it a more dominant force in the mobility retail market.
Alongside turnover growth, Oak Tree, which specialises in mobility furniture, increased EBITDA by 22% as bosses implemented a new medium-term strategy, according to the company’s latest financial report filed with Companies House last week.
Operating profit grew less than in 2016 but the company has invested heavily to prepare its other mobility retail arm, Middletons, for market growth.
Middletons won £4m of investment recently which the group plans to use to open more than 20 new stores in the next three years and eventually take the retailer national, with one store every 50 miles.
Oak Tree’s directors said of the injection: “The investment was a result of a transformative period for the company and is a momentous achievement that will allow the directors to fulfil the future vision for the company.”
During the last 18 months Oak Tree’s directors said the management team has been strengthened at an executive board level and management level.
Key appointments have been made to bring additional commercial and retail experience to the business.
“It is felt these additional skills complement the existing skill set within the business and places the business on a solid foundation from which to deliver its strategy for moving forward,” stated the directors.
Oak Tree made ‘fundamental changes’ to the operating nature of the business during the period, which the directors said improved EBITDA.
Changes included appointments and more investment in staff training and IT projects to support the business.
The report stated: “The investments reflect the directors’ ongoing belief that providing the highest levels of customer service and maintain a highly motivated and effective sales force are the foundations of future success.”
Oak Tree’s operating profit grew by around £2,000 for the period, compared to £180,000 for the previous period.