Rug business delivers mixed performance

Rugs business The Rug Company has reported consistent sales. According to its latest filed accounts for the year ended 2 April 2023, total sales stood at £10.1m, flat on last year.

Pre-tax losses resulted at £347,000, down from a profit £89,000 recorded in 2022. EBITDA stood at £600,000.

Stated within its report, the company said retail sales rose 4.8% to £8.7m from £8.3m, while franchise sales fell 23.5% to £1.3m from £1.7m year-on-year.

As for its divisions, UK sales remained flat at £7.5m, while EU sales jumped 47% to £681,000 from £463,000. Sales in the US declined 33.7% to £729,000 from £1.1m, while rest of the world revenues increased 22.3% to £1.1m from £899,000.

The Rug Company said: “Gross margins did see an impact in the year but this is mostly driven from shift in mix to contract where, although increasing the scalability of our revenue, is at a lower margin than our core traditional revenue stream.”

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