Asiatic Carpets, leading rugs wholesaler based in north London, experienced a significant drop in profits last year as escalating costs overshadowed the benefits of increased output. The privately-held company reported a 45 per cent decline in profits, which fell to a still robust £1.28 million for the year ending 31 March 2024.
Photo: Asiatic Carpets.
Despite a 10 per cent rise in revenue, reaching £19.5 million, the company's gross margins were negatively impacted by higher sales costs. Administrative expenses also increased proportionally with turnover, contributing further to the pressure on profits.
The company's financial position showed a net draw down of £632,552 on its overdraft facility as of spring 2024, compared to a net cash reserve of £1.3 million the previous year. This shift was largely attributed to an increase in receivables due at the end of the financial year and dividends distributed to minority shareholders.
Net assets, which include the firm's substantial property holdings, stood at £27.9 million, a slight decrease from £28.2 million in 2023.
While the figures reflect the challenges posed by rising operational costs, Asiatic Carpets maintained its position as a major player in the rugs wholesale market. The company continues to navigate a competitive landscape, focusing on sustaining healthy revenues amidst economic pressures.
Source: www.thefurnishingreport.com