The UK division of US mattress manufacturer Sealy has reported a growth in sales as turnover climbed towards £30m.
According to its latest filed accounts for the year ended 30 June 2022, total sales rose 42.7% to £27.4m from £19.2m in 2021. Pre-tax losses resulted at £5m, widening from a loss of £647,000 recorded in the previous year.
Stated within its report, Sealy said that margins decreased from 25% to 16%, which was largely due to increased labour costs during the year in preparation for launching new products and planning for future growth.
“During the second half of the year, the company introduced new product ranges which utilise its unique proprietary innerspring technology and the directors and management are focused on using this to drive revenue and profit growth to improve performance,” the business said.
In November 2022, the company also introduced a “limited redundancy scheme” to align its manufacturing capacity with future business needs. “The directors are confident that the redundancies do not place future growth prospects into question”.
Furthermore, Sealy secured additional loans amounting to £9m (£4.5m of which in November 2022 and the other £4.5m in January 2023) from shareholders to support its operations moving forward.