Sofa manufacturer and wholesaler, Scan-Thors (UK) Ltd, has reported a decline in sales.

According to its latest filed accounts for the year ended 31 December 2023, total sales fell 42% to £5.8m from £10m in 2022.

UK sales fell 2% to £4.9m from £5m, while overseas sales declined 81% to £942,000 from £5m.

Pre-tax losses resulted at £772,000, compared to its profit of £338,000 recorded in the previous year.

Stated within its report, the company said: “Overall turnover decreased significantly in the period, heavily influenced by the loss of a long-term principal client, due to a change of buying strategy and consolidation of supply within that business.

“A very short notice period, combined with an increasingly cautious approach to new product introductions across the industry, has resulted in a lengthy period of slow business recovery.

“A generally depressed market, with many retailers “hunkering down” as a result of low consumer confidence, has of course further impacted both the turnover figure and the ease of and speed of the recovery process.

“Whilst margins on product increased by almost 8% due to our vertical integration strategy, transport costs increased by almost 4% and other customer-related costs resulted in an overall gross profit reduction of 4%.

“Overheads reduced by 4% in monetary terms, mainly due to currency fluctuations and increased 14% in percentage terms, due to the bulk of them being of a fixed nature, measured against a lower turnover.”