Rising costs impact profit at carpet maker

Carpet manufacturer Greenwood & Coope, trading as Cormar Carpets, has reported another growth in turnover as higher prices offset reduced demand.

According to its latest filed accounts for the year ended 30 September 2022, total sales rose 2.2% to £148.1m from £144.9m in 2021 – adding to its growth of 30% in 2020 when sales stood at £111.5m.

Pre-tax profit resulted at £5.6m, down from £11.7m recorded against the previous year.

UK sales were up 1.8% to £143.5m from £140.9m, while EU sales rose to £4.4m from £3.8m. Outside the EU, revenues increased from £154,000 to £161,000.

Stated within its report, the company said sales were up mainly due to increased prices as a response to rising costs, which offset lower volumes.

“Trading volume continued the strong trend of last year into H1 of 21/22, however post February sales levels softened. This, combined with the inflationary effects of raw materials, labour, energy and shipping throughout the year, reduced the full year gross profit percentage by 1.5ppts to 29.4%,” the company added.

“This allied to an increase in distribution and administrative expenses primarily due to labour and fuel costs resulting in the lower profit for the year.”

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