Manufacturer of polyurethane foams, Carpenter, has reported a growth in sales as turnover climbed towards £125m.
According to the latest filed accounts ended 31 December 2021, total sales rose 26.6% to £124.6m from £98.4m in 2020.
Gross profit decreased from £29.6m to £27.3m, while pre-tax profit resulted at £17.4m, down from £19.1m recorded the previous year.
Stated within its report, the company said UK sales were up 13.8% to £96.1m from £84.4m, while EU revenues rose 157.6% to £20.1m from £7.8m. Outside the EU, sales grew 38% to £8.3m from £6m.
Carpenter said the growth was partly due to a return to normal working after the Covid-19 pandemic restrictions but also due to sales price increases, made in response to ‘unprecedented cost increases’.
“Raw material costs started the year at relatively high levels brought on by the sharp increases in the second half of 2020. Coupled with continued tight supply, those costs remained at high levels throughout the year and indeed the cost of some raw materials rose further. Other costs also significantly increased leading to inevitable and necessary adjustments to selling prices,” Carpenter said.
“Despite those sales price increases, under recovery of cost increases ultimately led to a loss of margin.”