Reduced consumer demand impacts bedroom furniture supplier

Suppliers of contemporary bedroom furniture, Home Decor, has reported a decline in sales although losses narrowed.

According to its latest filed accounts for the year ended 31 December 2022, total sales fell 12% to £26.4m from £30m in 2021. EBITDA stood at £1.7m, down 42% from £2.9m against the prior period. Pre-tax losses resulted at £2.5m, narrowing from a loss of £10.5m year-on-year.

UK sales were down 11.7% to £24.8m from £28.1m, while EU sales slipped from £1.6m to £1.3m. Outside the EU, sales rose from £228,000 to £263,000.

Stated within its report, the company said: “This reduction was seen across all channels driven by an underlying reduction in consumer spending due to a reduced consumer confidence driven by Ukraine war and subsequent cost of living crisis.

“This was also on the back of extreme spending during 2021 post the Covid pandemic. Margins increased within the year despite continued supply chain disruptions and levels of material price inflation as customer price increases began to catch up with supplier increases.

“Overhead costs reduced in 2022 driven by a restructuring of the business in April 2022 in response to the reduction in sales revenue.”

The company added that in November 2022, its subsidiary Optiplan Kitchens was placed into administration after being unable to recover from the Covid impact, ongoing economic challenges and cost increases. Due to the write off of the investment in the business, this totalled an exceptional item of over £12m. Shareholder funds were also reduced by 111% due to loss for the year.

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