Bedroom furniture supplier grows sales; subsidiary closure impacts profits

Suppliers of contemporary bedroom furniture, Home Decor, has reported a growth in sales although saw profit fall to a loss.

According to its latest filed accounts for the year ended 31 December 2021, total sales rose 13% to £30m from £26.5m in 2020. EBITDA stood at £2.9m, down 18% from £3.6m against the prior period. Pre-tax losses resulted at £10.5m, down from a profit of £2.5m year-on-year.

UK sales were up 14.2% to £28.1m from £24.6m, while EU sales slipped from £1.7m to £1.6m. Outside the EU, sales rose from £170,000 to £228,000.

Stated within its report, the company said that the top line growth was driven by a full year of trading following the pandemic. “This was due to increased sales within the domestic retail and ecommerce market with sales across the company’s international channels decreasing as the Covid global pandemic impacted international trade.

“Due to disruption in the supply chain, increased levels of material price inflation and rise in freight and labour costs, margins were negatively impacted within the year due to the time delay in the business being able to pass these costs onto its customers.”

The company added that in November 2022, its subsidiary Optiplan Kitchens was placed into administration after being unable to recover from the Covid impact, ongoing economic challenges and cost increases. Due to the write off of the investment in the business, this totalled an exceptional item of over £12m. Shareholder funds were also reduced by 82% due to loss for the year.

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