Furniture business Kingcome Sofas, part of the Colefax Group plc, has reported a growth in sales but a reduction in profit due to digital investments.
According to its latest filed accounts for the year ended 30 April 2022, total sales rose 3.8% to £2.7m from £2.6m in 2021.
UK sales were down 4.3% to £2.2m from £2.3m, while EU revenues rose 48.2% to £421,000 from £284,000. USA sales registered £15,000, up from £5k, while rest of the world revenues totalled £33,000, up from £19k.
Gross profit remained flat at £1m, while pre-tax profit resulted at £80,000, down from £288,000 recorded in the previous year.
Stated within its report, the company, which operates its London showroom on Fulham Road and its Devon workshop and showroom in Heathfield, said gross margin remained consistent at 39%, while its order book was at a “low level” due to the showroom reopening following the Covid-19 restrictions.
“Orders quickly recovered reflecting a surge in housing market activity and home related spending caused by the pandemic. The decrease in pre-tax profit margin was mainly due to one-off website and marketing costs during the year as well as the absence of prior year coronavirus support,” the company said.
Kingcome added that the order book ended the year close to record levels resulting in a strong start to the new financial period, while confirming that it has started major investment at its Devon factory to increase capacity and improve productivity and energy efficiency.