Luxury bed maker grows profit; benefits from group restructure

Luxury British bedmaker Harrison Spinks has reported another year of strong sales despite a slight decline, while profit delivered growth.

According to its latest filed accounts for the year ended 25 June 2023, total sales fell 13% to £40.6m from £47.1m in 2022. Pre-tax profit resulted at £1.4m, up from £909,000 recorded in the previous year.

UK sales fell 14.1% to £38.7m from £45.1m, while EU sales decreased from £1.7m to £1.5m. Revenues from the rest of the world registered an uptick of 72% to £404,000 from £234,000 from year-on-year.

Stated within its report, Harrison Spinks said: “The company delivered a respectable set of results in terms of turnover and profit considering the extremely tough market conditions driven by increased costs and low consumer confidence.

“At the start of the financial year, we transferred Weaving, Fillings, Farm/Hemp and Quad pocket springs production from HS Products Limited to Harrison Spinks Beds Limited. This was due to the fact that all of these operations had a direct correlation to the manufacture of mattresses for Harrison Spinks Beds Ltd, with HS Products focusing on its core activity of Microcoil manufacture and wire drawing. Whilst a significant task, the benefits of a simplified process of accounting for both businesses has been achieved.

“Sales in the UK were relatively strong with most of our key retailers performing in line or ahead of forecast and supported by new customers who will drive future growth. The introduction of a lower end mattress for selected channels has been successful and this has allowed us to appeal to more people at the luxury end of the bed and mattress market. Our export business in particular struggled throughout the period, which prompted a full strategic review of this part of our business.

“The transition to our new Cortec™ pocket spring system has been a major success and this has created a strong platform for our product offer moving forward. Furthermore, we have invested heavily in next generation spring technology, with our new Sky 300 ultra-fast coilers now being integrated into spring manufacturing.

“We carried out a significant re-structure of the management across the business and we are seeing the positive impact on this, particularly in terms of the operational efficiencies and agility in all aspect of the business.”

Meanwhile, the components division of the group, with elements now under the main manufacturing company as detailed above, saw sales decline by 39% to £17.3m from £28.4m over the same period. Pre-tax profit resulted at £1.1m, consistent with the result of the prior year.

UK sales represented £14.7m, while EU sales stood at £1.1m. Revenues from the rest of the world registered £1.3m.

“To achieve our strategic growth goals, the business took on the lease of a 35,000sqft distribution centre a couple of miles from the main manufacturing site in Leeds,” the group said. “This is to enable us to grow our sales with existing and new customers and also to allow us to hold stock for key customers to offer improved service levels. This frees up manufacturing space for our main site in Leeds.”

Total Spinko group sales for the period stood at £49.9m, down from £57.7m, with a pre-tax profit of £3.2m, rising from £2.2m the previous year.

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