Furniture retailer Smallbone became the latest luxury retailer to buck the downturn, more than trebling its pre-tax profit for the six months to June 30. However, the retailer remains cautious about the future trading environment.

Smallbone revealed pre-tax profit of£620,000, compared with£206,000 for the same period last year. EBITDA climbed 14.6 per cent to£30.4 million.

Smallbone operates 12 UK stores, and another is due to open in London’s Belgravia next month. UK stores increased revenue by 6.5 per cent, and Smallbone continues to review opportunities for new showroom locations.

The retailer said international operations performed well, particularly in the US, where it will open its third Smallbone showroom in February.

Executive chairman and chief executive Charles Smallbone said: “The first half has seen further growth and increased profitability as our group strategy continues to deliver. While the affluence of our typical customer shields us from a lot of the uncertainties of the mass market, we are cautious of the rapidly changing economic outlook and a subsequent slowdown in new orders.

“We are keeping tight control of costs and implementing best practice initiatives to ensure that the group continues to grow despite tougher conditions.”

Smallbone is acquiring Christopher Peacock Cabinetry, a luxury US kitchen retailer. Completion is expected by September 5.

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