Change of products and cost control boosts profit at wholesaler

Furniture wholesaler Birlea has reported a decline in sales but a growth in profit.

According to its latest filed accounts for the year ended 31 October 2021, total sales fell 3.8% to £22.7m from £23.6m in 2020.

Gross profit increased from £7m to £8.4m, while pre-tax profit resulted at £3.5m, up 40% from its profit of £2.5m recorded the previous year.

Stated within its report, the company said that improved trading conditions led to the bottom line growth with a change of product mix, favourable exchange rates and careful management of costs all contributing factors.

Looking ahead, Birlea added that accounts show an ‘extremely encouraging position’ with both turnover and operating profit ahead of 2021 and also ahead of budget.

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