The parent company of bed manufacturer Hypnos, Keen & Toms Holdings, has reported strong sales in a year that has seen significant operational restructuring.
According to its latest filed accounts for the year ended 1 July 2023, total sales stood at £64.9m, up from £64m in 2022. Pre-tax losses resulted at £2m, down from its profit of £933,000 recorded the previous year.
Stated within its report, the group, which owns the Hypnos and Keen & Able brands, said: “During the period covered by this report, following the appointment of a new Group Managing Director, the Group Executive board undertook a strategic review of the group performance across the individual operating companies, sites, teams and leadership.
“Undertaken with a view to “right-size” the group business’ and departments, removing loss leading operations, lowering operating costs, and enabling strategic investments, by simplifying the business model ahead of its 120th year.
“A key part of this simplification for the group was the decision to re-focus on its core Hypnos businesses, in upholstery and bedmaking, where its Royal Warrants are held. Placing the business in the strongest possible position for its next centenary, this encompassed the loss of a volume account for the Hypnos Contract beds division.
“The Executive Board took the decision to cease trading operations of its venture business “Keen and Able Limited”; a two-man logistics company, including exiting its three dedicated sites.
“Optimise operations at Hypnos Contract Beds reducing to one core site, in total the company agreed the exit of four sites through this process, focusing on its owned site at Princes Risborough, and the leased Castle Donnington site.
“The Executive Leadership will continue to strategically monitor and optimise its operations, to improve performance and generate sustainable business results.”
Furthermore, the operational changes have helped the company reduce production and supply lead time to 2-4 weeks, despite new customers, ranges and growth, as well as setting up two new strategic partners as part of its European contract manufacturing restructure.
Within its divisions, bed manufacturer Hypnos posted sales of £40m, slightly down from £40.4m, with a profit of £321,000, down from £1.2m. Meanwhile, Hypnos Contract Beds, which supplies hotels and hospitality properties, reported sales of £20m, down from £28m. Profit resulted at £129,000, improving from its loss of £1m.
