Furnishings supplier suffers loss on growing sales due to supply chain disruptions

Contract furnishings solutions supplier David Phillips has reported a growth in turnover as sales climbed over £30m.

According to its latest filed accounts for the year ended 31 March 2022, total sales rose 28% to £32.5m from £25.4m in 2021.

Gross profit remained consistent at £10.3m, while pre-tax losses resulted at £3.5m, down from a profit of £121,000 recorded in the previous year.

Stated within its report, the company said that despite turnover growth it felt the impact of widespread supply chain disruptions, seeing a five fold increase in Far East freight costs, together with a 20% wage rate inflation for labour. These increases drove a 9% dilution of the gross profit margin.

“The company has reset pricing to reflect the adverse impact for the current year. The company was also impacted by one off costs for third party warehousing; however, this space was exited by the end of the year.”

During the year, the company also made significant steps towards building a more sustainable proposition, expanding its innovative Release take-back programme and launching this as a web-based service to sell repurposed furniture.

The company handled more than 10,000 items of furniture with them either being repurposed back into commercial life, distributed to a number of local and national charities or sold.

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