Beds and mattresses manufacturer Mansion House Bedding Company has reported a growth in sales.
According to its latest filed accounts for the year ended 31 March 2023, total sales rose 5% to £8.4m from £8m in 2022.
Pre-tax profit resulted at £158,000, down from £538,000 recorded the previous year.
Stated within its report, the company, which operates brands including The Old English Bed Company, Mattison Contract Beds and EPOC, said that sales growth was largely due to growth in the contract sector.
“Turnover increased from the previous financial year largely from increases in the contract sector. Gross profit percentage dropped compared to the previous financial year due to increases in raw material costs and greater labour costs, as well as a greater reliance on outsourced skilled labour.
“Similarly Net profit percentage dropped compared to the previous financial year due to price increases across the board, as well as expenditure on site maintenance that had been delayed during Covid-19. There was also a significant increase in depreciation charge as a result of the investment in improvement to property and new vehicles.
“The group continues to invest heavily into new automated machinery and is continuing to look at ways to bring in new machinery to help reduce costs and maximise productivity. Investment was also made on the factory property, with renovations taking place to allow for a new showroom which can showcase the product ranges available to the contract and retail sectors.
“The group, as with the rest of the country, has experienced extremely high price increases across both goods and services, for example with diesel prices and the cost of new energy contracts. Some of these increases have been absorbed by the company, however price increases have also had to be put in place with customers.
“The group has committed to a new accounting package and ERP system, with the aim to consolidate and improve internal processes and provide more insight into stock availability and manufacturing capacity in real time. It is expected that this change will be implemented by the end of Q3 in the next financial year.”
