Kitchen furniture maker grows sales beyond £100m

Kitchen furniture manufacturer Ultima Kitchens has reported another growth in turnover as sales surpassed £100m.

According to its latest filed accounts for the year ended 31 December 2023, total sales rose 12.4% to £103.6m from £92.1m in 2022, further adding to its growth of 23.6% from £74.5m in 2021.

Pre-tax profit resulted at £22.3m, down from £25.8mm recorded the previous year. Operating profit as a proportion of turnover has decreased to 22%, from 28% in the previous year.

Stated within its report, the company said: “At the start of the year, the company invested £3.4m in a factory and team located in Dewsbury to launch a true handless kitchen range, which will come to market during the second half of 2024. This site is anticipated to produce 20% more cabinets than the current production capability.

“Profitability has been adversely impacted during 2023 due to down time from the replacement of the main edge banding line at the production facility in Sherburn in Elmet and the on-going investment in a new manufacturing facility in Grimethorpe. This, along with the Dewsbury factory, will allow the business to double production capacity.

“The Company has continued to invest in technology and new facilities, investing £8.4m during the year in machinery and £2.6m in delivery vehicles. The Company has funded this expenditure from operating cash flow.

“This investment was made in order to increase manufacturing capacity and reflects the growth in the Company’s turnover and expectations of continued growth in future years. All capital expenditure as well as the method of funding the expenditure is evaluated prior to approval.”

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