Upholstery manufacturer Sherborne has reported a decline in sales and profit.

According to its latest filed accounts for the year ended 30 June 2024, total sales stood at £18.9m, down 20% from £23m in 2023.

Pre-tax profit resulted at £22,000, down from £199,000 recorded in the previous year.

Commenting on its results, Sherborne said: “The Company’s turnover dropped by 20% from the previous year. This was expected due to an increase in general discounting and the loss of a large contract with a major customer.

“At the beginning of the financial year, the Company had closed a production site and rationalised operations to one location. This process also included a necessary reduction in employees with a large re-organisation expense, but more recent events have seen the transfer of the ownership of the business into an Employer Ownership Trust Model for the benefit of the staff for the long term.

“A 2.2% increase in gross profit showed the benefits of operating from one site with a reduction in direct and indirect expenses for the financial year. As a business, we continue to maintain strong relationships with our customers and are confident of increasing our market share in the future, alongside working with suppliers to reduce costs to help us remain the market leader of our core products.”