A prominent beds and mattresses manufacturer has reported a 24% decline in sales for the year ending 31 March 2024. Total sales dropped to £10.1 million from £13.3 million the previous year. UK sales fell by 24%, from £12.9 million to £9.8 million, while EU revenues declined by 29%, from £392,000 to £276,000.
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Pre-tax losses widened to £1 million, compared to a loss of £215,000 in 2023. In its report, the company highlighted that challenging trading conditions were largely driven by reduced customer confidence.
From January 2025, the parent company, Dreambase Ltd, will cease trading. All expenses will be absorbed by the manufacturer. The report also listed an extraordinary item in the profit and loss account, regarding the £374,000 owed by Dreambase Ltd, which cannot be repaid due to insufficient assets.
To support cash flow, the directors have injected £400,000 into the business, with repayment to be made only when trading conditions improve.
Despite the difficult financial year, the manufacturer has launched a new bed range, rebranding initiatives, and activated numerous dormant business-to-business accounts with floor placement incentives. This has resulted in an increase in new orders, suggesting positive growth potential.
Nick Williams, Sales Manager, commented: 'Following the successful rebrand and the launch of a new bed range and catalogue, we now have a substantial number of new floor displays from over 100 customers. We are confident that 2025 will continue to deliver growth, similar to what we've seen since the NBF Bed Show.'
Source: www.bigfurnituregroup.com