Wool traders and processors G. Modiano has reported a slight decline in sales as turnover maintained over £160m.

According to its latest filed accounts for the year ended 31 March 2023, total sales fell 1.5% to £163.5m from £166.1m in 2022.

Sales in the EU accounted for £128.2m, declining 2.2% from £131.2m, while revenues outside the EU rose 1.4% to £35.3m from £34.8m.

Pre-tax profit resulted at £15.5m, down from £19.2m recorded in the previous year.

Stated within its report, the company said: “Transport costs have reduced over the year as they return towards pre-pandemic levels. However, logistics have continued to suffer from longer transit times for moving the raw wool to the mill.

“During the year the price energy peaked at much higher levels, largely due to the disruption caused by the Russian invasion of Ukraine in February 2022. Our subsidiary’s mill in the Czech Republic has reduced its dependence on gas and the directors will continue to evaluate whether other measures may be required.

“There remains a real prospect of recession in Europe. However, the company has a good order book and demand is currently stable. We believe we can scale our operations to meet any likely fluctuations in demand caused by either a recession or a return to growth.”

G. Modiano is based in the UK and has sourcing operations in Australia, New Zealand and South Africa, as well as its processing division in Czech Republic and sales offices in Turkey, China and Italy. It is one of the leading suppliers of wool tops to the European textile trade.