Bedshed restructure results in profit rise and expansion plans
A restructured business model at bedding and furniture retail franchise Bedshed has helped boost net profit after tax by 1148 percent for its parent company, Joyce Corporation, for the six months to 31 December 2010. The corporation's profit of $2,023,410 compares to a loss of $193,000 for the corresponding period in 2009.
Joyce chairman Dan Smetana cited "strong and visionary management" for the transformation of the business, which resulted in a multi-unit business model for existing franchisees, and a reduction of its company owned stores.
Executive director Anthony Mankiaros said "Significant work has been done to streamline operations and deliver a more conservative balance sheet, and this process is largely complete.
"Our Bedshed franchisees are responding very positively to this approach because it delivers them the opportunity for strong margin growth. They already enjoy one of the highest margins in the bedding and furniture franchise sector.
"We expect our procurement efficiencies will continue to improve, along with our marketing presence, as we look to expand our franchise base and take advantage of market opportunities for higher-margin franchise operations, particularly on the east coast."
Bedshed has 40 franchise stores, but only two in New South Wales. "We now have broadly identified eight premium sites in the state and see the recruitment of franchisees for these stores as an essential component of our national and international ambitions," Mankiaros said.
The 124 year old Australian owned and operated Joyce Corporation acquired 100 percentof the Bedshed business five years ago, after holding a 49 percent shareholding. The corporation has a long history in manufacturing, and owns substantial commercial properties.