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SStark · Executive Cockpit

Board & Family Pack

Stewardship, performance and value review — FY26 (modeled). Carpet · Rugs · Fabrics · Wallcoverings · Furniture.

£165m

Revenue (modeled)

1938

Founded · family-owned

670

Employees

Brand houses & acquisitions

Owner: Private — Stark family (3rd generation) · CEO Chad Stark · CFO Chief Financial Officer · HQ 979 Third Avenue, D&D Building, New York

Where we stand

Executive scorecard

Stark · Board & Family Pack · 1 · Executive Summary

Total Revenue

£165m

prior £150m

Revenue Growth (YoY)

10.0%

prior 8.0%

Adjusted EBITDA

£30m

prior £25m

Adj. EBITDA Margin

18.2%

prior 16.7%

To-the-Trade / Repeat-Designer Revenue

£116m

prior £104m

Repeat-Designer Mix %

70.0%

prior 67.0%

Designer-Account Retention

108.0%

prior 105.0%

Growth + Margin Score

prior 26

Executive summary

Growth & profitability

Revenue, EBITDA & house mix

Stark · Board & Family Pack · 2 · Performance

Revenue by product house

Carpet & Broadloom32%

Custom Rugs27%

Fabrics & Textiles23%

Furniture, Hides & Lighting10%

Wallcoverings & Trimmings8%

Carpet & Broadloom

£52m

+7% · EBITDA 18.6% · Repeat 74%

Custom Rugs

£45m

+14% · EBITDA 18% · Repeat 66%

Fabrics & Textiles

£38m

+9% · EBITDA 13.7% · Repeat 72%

Furniture, Hides & Lighting

£16m

+11% · EBITDA 5.4% · Repeat 58%

Wallcoverings & Trimmings

£14m

+6% · EBITDA 4.8% · Repeat 68%

Multi-brand validation

Brand-house economics & acquisitions

Stark · Board & Family Pack · 3 · Portfolio Thesis

House	Year	Revenue	Repeat	EBITDA uplift	Value captured	Status
Stark Carpet (flagship, 1938)	1938	£52m	£38m	0→19 (+19)	100%	Core
Old World Weavers	1992	£22m	£16m	3→8 (+5)	96%	Integrated
Stark Studio Rugs	2014	£24m	£14m	2→7 (+5)	88%	Integrated
Scalamandré / House of Scalamandré	2017	£30m	£20m	4→9 (+5)	84%	In progress
Hinson & Grey Watkins	2017	£7m	£5m	1→2 (+1)	80%	Integrated
Ashley Stark Home	2021	£9m	£4m	1→2.5 (+1.5)	70%	In progress
Fort Street Studio	2025	£6m	£2m	1→1.5 (+0.5)	28%	Early

Integrated houses show meaningful EBITDA expansion post-acquisition (~£4m average uplift); the newest house (Fort Street Studio, 2025) remains early in value capture.

Balance sheet & liquidity

A conservative, family-owned balance sheet

Stark · Board & Family Pack · 4 · Capital & Cash

Net Debt / EBITDA

0.5x

target 0.5x

Leverage Headroom

2.5x

target 2.0x

Interest Cover

12.0x

target 8.0x

Liquidity (cash + facility)

£38m

Free Cash Flow

£14m

target £18m

Cash Conversion Cycle

94d

target 80d

DSO (Days Sales Outstanding)

55d

target 48d

Acquisition-Integration Realization

74.0%

target 100.0%

Net leverage of 0.5x is deliberately conservative for a private, family-owned house — with £38m of liquidity, there is ample capacity to fund acquisitions, showrooms and collections from the balance sheet. The opportunity is working capital: cash conversion (CCC 94d) and FCF improve as WIP and trade receivables are freed across long bespoke lead times.

Governance

Watch-list & priority actions

Stark · Board & Family Pack · 5 · Risk & Actions

●Custom Rugs lead times stretchingceo

Hand-knot atelier capacity tight; on-time craft delivery 91.5% vs 95% target as Fort Street ramps.

→ Add atelier capacity (Nepal/Thailand); stage sample-to-loom earlier on marquee projects.

●Peter Marino commission → £4.2m opportunityceo

Design-press signal converted to a qualified custom-rug + fabric specification across retail & residences.

→ Prioritise studio bespoke design; align Custom Rugs + Fabrics houses on one proposal.

●3 hospitality accounts running DSO > 60 dayscfo

Rosewood (62d), Mandarin Oriental (59d), embassy/institutional (64d) lifting blended DSO to 55d.

→ Targeted collections on £0.9m; tighten deposit/milestone terms on long hospitality projects.

●Working-capital discipline holdingcfo

Net debt ~£15m (~0.5× EBITDA); interest cover 12×. Family-owned, conservative.

→ Capacity exists to fund Fort Street integration & a showroom opening from cash.

●Silk / fine-wool input costs firmingcfo

Fibre prices up; risk to Custom Rugs gross margin if not passed through.

→ Lock forward fibre where possible; reprice bespoke quotes for the new cost band.

●Fort Street integration behind planboard

Acquisition-integration realization 74% blended; Fort Street at 35% integrated (newest deal).

→ Hold the 90-day integration plan; absorb onto common order/PIM systems.

●Scalamandré cohort margin uplift validatedboard

House-of-Scalamandré fabrics expanded margin since the 2017 merger; cross-house attach rising.

→ Thesis intact; continue disciplined portfolio build (heritage brands).

●Cross-house whitespace under-convertedboard

Many designer accounts buy one house only; £36m cross-house whitespace identified.

→ Drive carpet↔fabric↔rug attach via showroom & account teams.

Material external signals

[Design Press] AD100 studio wins major luxury hotel commission · Peter Marino Architect (representative)→ custom rug + fabric specification opportunity

[Trade News] Four Seasons announces multi-property renovation programme · Four Seasons (representative)→ broadloom + custom rug pull-through

Structural data (brands, acquisitions, leaders, showrooms) researched from public sources; The Stark Group is private and family-owned, so all financials are modeled estimates. AI summary generated by Azure OpenAI.