Rising costs hit profit at carpet yarn supplier

Woollen yarn spinner and manufacturer to the carpet industry, Lawton Yarns, has reported a slight reduction in turnover while profit was also down.

According to its latest filed accounts for the year ended 30 September 2022, total sales fell 1.4% to £33.7m from £34.2m in 2021. Pre-tax profit resulted at £83,000, down from £876,000 recorded in the previous year.

UK sales were down 3.6% to £31.5m from £32.7m, while export sales rose 40% to £2.1m from £1.5m.

Stated within its report, the company said: “Costs of manufacture were reflective of the full 12-month period of the unprecedented increase in non-domestic energy prices without any government support.

“The directors partially mitigated this impact with an energy surcharge which was honoured by all of the customers. Overheads continue to be a focus for the directors with total annualised costs falling by £890,000.”

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