Furniture supplier Devonshire Living has reported a slight reduction in sales and profit, while confirming it plans to reduce prices.
According to its latest filed accounts for the year ended 31 July 2022, total sales fell 9% to £8.7m from £9.6m in 2021. Pre-tax profit resulted at £264,000, down from £558,000 recorded in the previous year.
Stated within its report, the company said gross margin increased to 32% from 23% year-on-year, while net assets totalled £4.6m compared to £3.7m in 2021.
Commenting the on the results, Devonshire said: “Like many, we saw an unprecedented sales boost in the aftermath of the Covid lockdowns, and an equally unexpected drop in sales when the shipping increases meant we had to raise selling prices. This uncommon high and uncommon low widened the turnover gap between these two years.
“The reduced profit value and increased assets go hand in hand, as we focused on ensuring strong stock levels to help support our customers through a difficult trading period, as well as investing in new technology and processes. Now that shipping rates have reduced, and we are working through the inflated stock, we are in the healthy position to reduce selling prices and increase volume once more.”
To support this move, Devonshire is in the process of recruiting two Area Managers to give ‘another layer of customer contact to our already exceptional service offer’, as well as developing new collections to widen its product offer.
“Overall, as a company we are pleased with how our team has managed to manoeuvre these exceptional circumstances and still come out in a profitable position at year end, with a strong base to push forwards in the new financial year,” the company added.