SStarkExecutive Cockpit

Finance 360

The single financial pane of truth — P&L, quality of earnings, profitability, FP&A and acquisition-cohort economics.

The Stark Group · FY26 (modeled)
Luxury to-the-trade — designers & architects only (no retail)
670 employees · 12+ US sites · 8 countries
Executive read· the answer, then the moves

Luxury margin is expanding, but ≈ £3m of EBITDA still sits between today's 18.2% margin and the 20% ambition — held in still-integrating houses and SG&A. Convert integration value and add-backs into reported EBITDA to compound enterprise value for the family.

8 of 8 headline metrics improving vs prior · still off target: Total Revenue £165m vs £178m, Revenue Growth (YoY) 10.0% vs 12.0%, Blended Gross Margin 55.0% vs 57.0%

Do now — ranked by urgency
  1. 1
    Close the margin gap to the 20% ambitionWatch
    Why it matters

    ≈ £3m of EBITDA stands between 18.2% margin and the 20% target — the swing that compounds the house's value.

    What's driving it
    • Adj. EBITDA margin 18.2% vs 20% target
    • 2 of 7 houses below 80% integration value capture
    FYI
    • Revenue £165m; SG&A 36.8% of revenue
    • Each margin point ≈ £2m of EBITDA
  2. 2
    3 hospitality accounts running DSO > 60 daysWatch
    Why it matters

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

    What's driving it
    • DSO
    • Signal: Alert
    FYI

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

  3. 3
    Silk / fine-wool input costs firmingWatch
    Why it matters

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

    What's driving it
    • Gross Margin
    • Signal: Alert
    FYI

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

  4. 4
    Digital-to-trade platform — PlannedWatch
    Why it matters

    Unbanked EBITDA until captured.

    What's driving it
    • £0.8m run-rate targeted
    • Signal: Integration savings
    FYI
    • E-commerce-to-trade & designer self-service ordering.
    • Owner: CFO
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Total Revenue
£165m
▲ 10.0% vs priorTarget £178m
Revenue Growth (YoY)
10.0%
▲ 25.0% vs priorTarget 12.0%
Blended Gross Margin
55.0%
▲ 2.8% vs priorTarget 57.0%
Adjusted EBITDA
£30m
▲ 20.0% vs priorTarget £33m
Adj. EBITDA Margin
18.2%
▲ 9.0% vs priorTarget 20.0%
To-the-Trade / Repeat-Designer Revenue
£116m
▲ 11.5% vs priorTarget £126m
Repeat-Designer Mix %
70.0%
▲ 4.5% vs priorTarget 74.0%
Free Cash Flow
£14m
▲ 55.6% vs priorTarget £18m
Exhibit 1

P&L bridge — revenue to EBITDA

How £165m of revenue converts to £30m adjusted EBITDA.

Exhibit 2

P&L at a glance

Revenue£165m100.0%
Cost of goods sold(£74m)(45.0%)
Gross profit£91m55.0%
SG&A(£61m)(36.8%)
Adjusted EBITDA£30m18.2%
Exhibit 3

Revenue & EBITDA

Exhibit 4

Revenue by product house

Carpet & Broadloom32%
Custom Rugs27%
Fabrics & Textiles23%
Furniture, Hides & Lighting10%
Wallcoverings & Trimmings8%
Exhibit 5

Reported → Adjusted EBITDA

Diligence-grade add-back walk.

Exhibit 6

EBITDA — prior to current

Organic vs. acquisitive vs. price/mix vs. cost.

Exhibit 7

EBITDA margin

Exhibit 8

Revenue concentration

Planning

FP&A & productivity

Forecast discipline, integration-value realization and productivity.

Budget Variance
-1.8%
▲ 40.0% vs priorTarget 0.0%
Forecast Accuracy
92.0%
▲ 3.4% vs priorTarget 95.0%
Acquisition-Integration Realization
74.0%
▲ 15.6% vs priorTarget 100.0%
Revenue / Employee
£246k
▲ 9.3% vs priorTarget £270k
SG&A % of Revenue
36.8%
▼ 3.2% vs priorTarget 35.0%
Growth + Margin Score
28
▲ 7.7% vs priorTarget 30
Exhibit 9

Acquired-house performance

EBITDA uplift and integration-value realization by acquired brand.

BrandYearRevenueRepeat revEBITDA %IntegrationStatus
Stark Carpet (flagship, 1938)0£52m£38m019%100%Core
Old World Weavers1992£22m£16m38%96%Integrated
Stark Studio Rugs2014£24m£14m27%88%Integrated
Scalamandré / House of Scalamandré2017£30m£20m49%84%In progress
Hinson & Grey Watkins2017£7m£5m12%80%Integrated
Ashley Stark Home2021£9m£4m12.5%70%In progress
Fort Street Studio2025£6m£2m11.5%28%Early