Manufacturer and supplier of beds, headboards, upholstery and converted foam products, Airsprung Group, has reported a decline in sales as profit fell into the red.
According to its latest filed accounts for the year ended 31 March 2024, total sales fell 12.7% to £25.3m from £29m in 2023. Beds sales represented £21.6m, down 5.6% from £22.9m year-on-year.
Pre-tax losses resulted at £1.3m, down from its profit of £7.8m recorded in the previous year.
Stated within its report, the group said that it has been a “very challenging” financial year due to various factors including high raw material costs, slowdown in demand and the cost-of-living crisis.
“Despite the weaker than anticipated sales volume, it is highly encouraging that when the sales line is reviewed against prior year, in the context of the ongoing operations, then sales reduced by approximately 6%, which is, the company believes, in line or better than the industry average,” the group said.
“The changes to the management structure that have taken place to simplify the group have provided us with a highly capable and focused team right across our business. This has resulted in a considerable uplift in our operational and commercial competences thus attracting new and exciting product development with existing customers and attracting new customers.
“After a strategic review of the group’s upholstery manufacturing operation based in Chorley, the decision was made to cases production at this site. The company continues to own the freehold land and buildings. Part of the site is now leased out to a third party. Exceptional closure costs totalling £611,000 were incurred during the year.
“Over the last two years, £500,000 has been invested in the installation of state-of-the-art packaging and other production equipment. The benefits of this capital spend are now being seen through production efficiencies. Savings from the consolidation of bed manufacturing onto one site, from the previous two locations, continues to be seen.”
Airsprung Group includes brands Airsprung Beds, Swanglen Furnishings, Hushabye, Gainsborough, Cavendish Upholstery, Airofreem and Arena Design.
