The parent company of bed manufacturer Hypnos, Keen & Toms Holdings, has reported a growth in sales and a return to profit.
According to its latest filed accounts for the year ended 25 June 2022, total sales rose 17.6% to £70.6m from £60m in 2021. Pre-tax profit resulted at £550,000, significantly improving from a loss of £1.1m recorded the previous year.
UK sales rose 8% to £60.1m from £55.6m, while outside the UK revenues increased 136% to £10.4m from £4.4m year-on-year.
Stated within its report, the group, which owns the Hypnos and Keen & Able brands, said that a significant loss of staff during the period from July to October hampered its ability to achieve budget revenue, while at the same time experiencing record demand for its products and services.
The company embarked on recruitment and retention, investing heavily in staff salaries, wellbeing, culture, training and other benefits to attract new and retain current staff. “This was very successful and by the end of December staff numbers were back to normal,” Hypnos said.
“Significant raw material price increases and energy costs put pressure on margins and the group often had no choice but to pass these increases on to its customers, but due to the sometimes very long lead times, there would be a delay before the group realised the benefit of these increases. Lead times are now back to a normal 4-6 weeks.”
During the year, the company also invested in product development and sustainability, including the launch of its Organic collection and hospitality Origins collection, as well as further developing its traceable wool initiative by sourcing wool direct from Waitrose farms for its John Lewis ranges.
The group added that is white glove home delivery business, Keen and Able, has been restructured and saw significant investment with new vans, IT and staff.
Within its divisions, bed manufacturer Hypnos posted sales of £40.4m, up 28.6% from £31.4m on the previous year, with a profit of £1.2m, up from £739,000. Meanwhile, Hypnos Contract Beds, which supplies hotels and hospitality properties, reported sales of £28m, up by 18.1% from £23.7m. Losses amounted to £1m.