Contract furniture design and manufacturing business, Boss Design, has reported a growth in sales as turnover surpassed £40m.
According to its latest filed accounts for the year ended 31 March 2023, total sales rose 41% to £43.7m from £31m in 2022.
Pre-tax profit resulted at £2.8m, significantly improving from its profit of £1m recorded the previous year.
UK sales rose 26.9% to £29.7m from £23.4m, while EU sales increased 246% to £2.8m from £807,000. Revenues from North America fell 37.5% to £2.5m from £4m, with sales in Asia growing 230% to £8.3m from £2.6m.
Stated within its report, the company said: “The Company achieved significant turnover growth in 2023 following on from the recovery from the COVID-19 pandemic demonstrated in 2022. Significant growth was achieved in the UK, Asian and European markets, with the increase being delivered by both new and existing clients.
“Margin levels decreased slightly, driven by inflationary pressure on raw material costs which the company was not able to pass on in full during the period coupled with product mix variation. Gross profit of £12.5m was 34.3% higher than 2022, a £3.2m increase.
“Overhead expenses increased by £1.3m (16.3%) versus 2022 due to the increased business activity levels coupled with significant energy cost increases and general cost pressures driven by the war in Ukraine.
“Trading conditions across all our geographic markets have noticeably tightened in the current financial year. Inflationary cost pressures, albeit reduced from the peak levels experienced in late 2022 remain, and Central bank decisions to increase interest rates to combat inflation have, and will continue to restrict economic growth, with the increased cost of borrowing impacting upon investment decisions.
“It is therefore unlikely that the Company will show an improvement on the results delivered in 2023. However, we continue to believe that the Company has the appropriate products and services to satisfy current market requirements and will continue to use its financial strength to invest in new products, infrastructure and market development activities as required. The directors believe that this will sustain and improve profitability over the medium to long term.”
