Carpet maker maintains strong sales and profit growth

Carpet manufacturer Cormar Carpets has reported a slight decline in turnover as sales remained strong at almost £150m.

According to its latest filed accounts for the year ended 30 September 2023, total sales slipped 0.2% to £147.7m from £148.1m in 2022.

Pre-tax profit resulted at £5.9m, up from £5.6m recorded against the previous year.

UK sales stood at £143.1m from £143.5m, while EU sales were flat at £4.4m. Outside the EU, revenues increased from £161,000 to £166,000.

Stated within its report, the company said: “Demand for our carpet remained resilient throughout the year despite the squeeze on household income caused by high inflation and higher interest rates.

“Whilst volumes remained robust, gross margin in the first half of the year was adversely impacted by high raw material and energy prices. These were compounded by a significant fall in the strength of the sterling relative to the dollar, which impacted our buying in prices of raw materials, of which a large proportion is purchased in dollars.

“The business implemented a price increase in November 2022 to protect profitability. However, our continued cost control programme enabled us to keep this increase to a minimum and maintain our competitiveness.

“Higher average selling prices, coupled with a recovery in sterling and tight cost control improved operating margins in the second half, helping full year operating profit margins recover.”

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