Increased costs and labour shortage impacts upholstery maker

Upholstery manufacturer Lebus has reported strong growth in turnover as sales surpassed £40m.

According to its latest filed accounts for the year ended 31 December 2021, total sales rose 26.6% to £43.3m from £34.2m in 2020.

Gross profit increased from £10.4m to £11.8m, while pre-tax profit resulted at £1.4m, down from £2.2m recorded the previous year.

Stated within its report, the company said that increased costs in materials and labour, while the volatility in the supply chain, impacted both margin and overhead, leading to a fall in operating profit.

“Despite a strong order book throughout the year, output was restricted, especially in the second half of 2021, due to reduced employment numbers,” Lebus said.

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