A manufacturer of mattresses and performance foam products has reported a fall in annual sales but a notable increase in profit.
For the year ended 31 August 2024, total sales declined by 5% to £12.3m, down from £13m in 2023. Despite this drop in turnover, pre-tax profit rose to £565,000, compared to £381,000 the previous year. Year-end cash also improved, increasing from £1.1m to £1.5m.
GNG Group, the parent company behind the Komfi mattress brand, attributed the profit growth to a strategic shift in operations. The group discontinued certain low-margin contracts and implemented manufacturing efficiencies, which contributed to an improved gross profit margin.
In its financial report, GNG Group highlighted continued efforts to move customers away from "cheap Chinese imports" in favour of UK-manufactured products. This transition enabled the company to offer "five-day lead times, lower stock and a positive cash impact" while providing higher quality products and reducing exposure to volatile shipping costs.
The group stated that these changes reflect a focus on enhancing operational performance and delivering long-term value through domestic production.
Source: www.bigfurnituregroup.com