A leading fitted furniture manufacturer has reported a significant financial downturn, citing reduced demand and market challenges as key factors.
For the financial year ending 31 March 2024, Crown Imperial reported a 22.8% decrease in total sales, dropping from £58.3m in 2023 to £45m. UK sales fell to £44.8m from £57.1m, while export revenues also decreased significantly from £1.1m to £247,000. Pre-tax losses for the period amounted to £3.2m, contrasting with a profit of £335,000 recorded the previous year.
The company attributed its decline to a general reduction in activity across the sector, driven by inflation and rising interest rates, which have impacted household budgets. Additionally, lower levels of activity in the housing market have led to reduced consumer spending on high-value projects, including kitchen replacements.
In its report, the company stated: 'This year we have experienced a further reduction in activity levels. This has been seen widely throughout our sector as household budgets have been significantly impacted by inflation and rising interest rates.'
The downturn reflects broader challenges within the furniture industry, where consumer caution and financial constraints continue to affect sales performance. The company's experience mirrors that of other industry players facing similar pressures in the current economic climate.
Source: www.bigfurnituregroup.com