Roof repairs impact bottom line at modular furniture business

Modular furniture manufacturer and retailer Vitsœ has reported a growth in turnover while profits fell into the red.

According to its latest filed accounts for the year ended 31 December 2022, total sales rose 4.7% to £15.6m from £14.9m in 2021.

Pre-tax losses resulted at £3.1m, down from a profit of £1m recorded in the previous year.

Stated within its report, the company said: “Having resisted passing cost increases to customers during 2021, the decision was taken in 2022 to increase prices to slow the continuing decline in gross margin. While group turnover increased, gross profit margin declined by 4.9%.”

During the year, the business incurred roofing repair costs of £3.4m, which impacted profits. Excluding this, EBITDA resulted at £998,000, down 54% from £2.2m the previous year.

“Despite the considerable impact of the roof repair, Vitsœ has show its resilience by continuing to trade profitability and looks forward with confidence,” the company said.

Vitsœ added that 73% of its revenues was driven by exports during the year.

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