Beds and mattresses manufacturer Mansion House Bedding Company has reported a slight decline in sales.

According to its latest filed accounts for the year ended 31 March 2024, total sales fell 4.7% to £8m from £8.4m in 2023.

Pre-tax losses resulted at £46,000, down from its profit of £158,000 recorded the previous year.

Stated within its report, the company, which operates brands including The Old English Bed Company, Mattison Contract Beds and EPOC, said: “Turnover declined year-over-year, with decreased trading across all active sectors, driven by the slowdown in the UK economy in response to rising cost-of-living pressures. The contraction was most notable within retail sales during the reporting period.

“Gross profit margins were adversely impacted, primarily due to rising raw material and labour costs, with the increased reliance on outsourced labour exacerbating the effect. The group continues to face challenges in recruiting and retaining a skilled workforce, leading to a reduced headcount during the financial year.

“Despite stable overheads relative to the prior financial year, net profit margins declined due to reduced trading volumes. Notably, energy costs increased significantly as a result of new, higher energy prices, while financing costs decreased following the commencement of the phased wind-down of the group’s invoice financing facility.

“The group continues to invest heavily into new automated machinery and is continuing to look at ways to bring in new machinery to help reduce costs and maximise productivity. A newly completed showroom, finalized early in the financial year, has provided expanded capacity to showcase the company’s product range to both contract and retail markets.

“The group, in line with broader economic trends, has encountered substantial price increases across goods and services, particularly in energy contracts. While some of these costs have been absorbed, necessary price adjustments have been implemented across the customer base to offset the impact.”