Furnishings brand Neptune has reported a return to profit as sales remained strong despite slight decline.

According to its latest filed accounts for the year ended 30 September 2024, total sales fell 3% to £60.4m from £62.3m in 2023.

UK sales fell to £53.1m from £54.5m, while outside the UK revenues also declined to £7.2m from £7.7m.

Pre-tax profit amounted to £345,000, significantly improving compared to its loss of £1.5m recorded the previous year.

Stated within its report, the company said: “FY24 was a pivotal year for Neptune, marking important progress in our journey toward long-term, sustainable profitability. Whilst turnover remained stable at £60.4m (vs £62.3m in FY23), this performance was achieved against a backdrop of continued significant external headwinds, including category-wide demand softness in the UK and ongoing shipping disruptions arising from conflict in the Middle East.

“In response, the business, as part of the wider Neptune group, delivered a broad range of cost reduction and operational efficiency initiatives whilst also making strategic changes to strengthen leadership, most notably through the appointment of our new CEO, Mike Clark. These efforts supported a return to profitability, with Neptune Europe operating profit of £1.3m, in contrast to the £0.6m loss in the prior year.

“FY24 represents a clear turning point in the business’ turnaround strategy, moving from stabilisation into positive momentum. The Board is particularly encouraged by the continued improvement in financial performance into H1 FY25, with EBITDA significantly ahead of the same period last year. We are increasingly confident that the business is on track to deliver a much stronger full-year result.

“As we look ahead, we do so with a renewed sense of purpose, focus, and optimism. I would like to offer my thanks to the Neptune team whose hard work and determination have been instrumental in navigating the challenges of the past few years and setting new pace and momentum for the business.”