Upholstery group restructure improves performance

Upholstery manufacturer G Plan recorded an increase in revenues, as other businesses from the Sofa Brands International group delivered reduced sales.

According to the latest filed accounts for the year ended 30 June 2023, total G Plan sales rose 8% to £49.9m from £46.2m in 2022. Pre-tax losses resulted at £364,000, slightly narrowing from £373,000 recorded in the previous year. The company said that the improved performance was driven by a “combination of stronger sales and dramatically reduced administrative expenses following a major group restructure”.

Parker Knoll saw revenues fall 7.2% to £35.8m from £38.6m, while posting a loss of £1.3m, consistent with the previous year. The company said it was a “transition year” as sales dropped back to normal levels after exhausting high demand following Covid. Meanwhile, Duresta reported sales of £7m, down 19.5% from £8.7m, but did narrow losses from £930,000 to £755,000. The company added that supply chain disruption played a part in reduced sales, but remains optimistic for the year ahead.

As for The Lounge Co, total sales stood at £7.3m, down 9.8% from £8.1m, while pre-tax losses amounted to £1.3m, up from £985,000. The company said that the sales fall was inline with expectations following the uplift in relation to the Covid boom in online sales. The company has also appointed a new external digital marketing agency as part of its strategy to improve performance. This has already led to an improvement in sales.

Collins & Hayes reported sales of £2.3m, flat on the prior year, while losses reduced from £187,000 to £112,000 year-on-year. The company said it performed “reasonably well” with the improvement due to the wider group restructure, which in total saved the business in annual costs by c.£6m.

Parent group behind Sofa Brands International reported a pre-tax tax loss of £15.1m, down from a loss of £15.8m recorded in 2022. Group sales stood at £92.1m, down 0.3% from £92.4m year-on-year.

Save this article for later

You can revisit this article if you save it as favourite news!

Leave a Comment

MORE ARTICLES

Romilly Newbound, Company Director at Back in Action, talks about the importance of health and ergonomic products as well as concerns over high street retail....