Upholstered furniture manufacturer Buoyant Upholstery has reported a decline in sales and profit.
According to its latest filed accounts for the year ended 30 September 2024, total sales fell 18.9% to £41.8m from £51.5m in 2023.
Pre-tax profit resulted at £1.4m, down from £2.7m recorded the previous year.
UK sales were down to £38.2m from £46.3m, while revenues in its Ireland division also decreased to £3.5m from £5.2m year-on-year.
Stated within its report, the company said that gross margin was at 27.1% compared to 25.7%, with management of staffing levels and supplier prices contributing to the improve margin.
“The turnover for 2024 was down by 18.9%, although we saw stabilising of raw material prices allowing margins to improve to a sustainable level. Overall market conditions were still challenging with reduced consumer spending on large ticket items seen across the sector and was in-line with the reduction seen in house transactions during the year.
“As we enter 2025, we have seen an increasing demand for our products helped by the launch of a number of very successful models and a pickup of house transactions to a normalised level. The company is currently performing ahead of both budget and 2023 and the board looks forward with confidence although the directors are very conscious of what April 2025 will bring with the increase of both the minimum wage and the substantial increase in Employer National Insurance contributions. We have had no option other than to raise selling prices to cover the additional costs.”
