Sustainable bedding manufacturer The Fine Bedding Company has reported a decline in sales but a return to profit.
According to its latest filed accounts for the year ended 31 January 2024, total sales fell 5.2% to £25.9m from £27.3m in 2023.
UK sales were down 5.7% to £19.8m from £21m, while EU revenues also fell by 14.2% to £3m from £3.5m. Sales outside the EU delivered growth, up 11.1% from £2.7m to £3m.
Pre-tax profit resulted at £41,000, improving from a loss of £230,000 recorded the previous year.
Stated within its report, the company said: “The financial year was marked by significant external challenges, including the ongoing Ukraine conflict, a persistent cost-of-living crisis, and shifts in consumer behaviour, all of which had a pronounced impact on consumer and retailer confidence.
“Despite these macroeconomic pressures, The Fine Bedding Company demonstrated resilience, achieving a turnover of £25.97 million, representing a modest 5.2% decrease compared to the prior year. Our operations were both challenged and shaped by these factors, but we managed to mitigate the impact, buoyed by successes with some of our larger accounts and further progress with our online sales.
“Gross margins improved by 1.5%, a significant achievement attributed to our ongoing efforts to enhance manufacturing efficiency and maintain close working relationships with our longstanding supply base, particularly in managing input costs.
“Operating costs remained well-controlled and in line with our plan, despite upward pressures on wages and the continued high energy costs. Our focus on cost management ensured that we were able to navigate these challenges effectively without compromising on quality or service.
“Working capital remains healthy and has improved, reflecting strong financial management. We generated £1 million in cash for the period and successfully reduced inventory by 13% through a close focus on our stockholding of both raw materials and finished goods.
“As we look ahead, we remain cautiously optimistic about the future. Our focus will continue to be on sustainability and growth, as we adapt to serve our ever-evolving customer base.”
