A modest increase in annual revenue has failed to offset mounting operational costs for a leading fitted furniture manufacturer, which posted deepened pre-tax losses in its latest financial results.
© Strachan
For the year ended 30 June 2024, Strachan recorded a 1.3% rise in turnover, reaching £6.2m, up from £6.1m the previous year. Despite this, pre-tax losses widened to £207,000, more than double the previous year's loss of £85,000.
The company attributed the decline in profitability to a drop in gross profit margin, which fell to 42.8% from 44.8%. It cited "significant increases in the cost base" due to higher prices across labour, fuel, insurance, and energy.
In its annual review, the company warned that the "cost of living squeeze" is expected to continue influencing business performance both internally and externally, with rising input costs and weakening consumer demand creating further challenges.
The figures underline the ongoing financial pressures facing the manufacturing and home improvement sectors, particularly in a volatile economic environment where operational costs remain elevated.
Source: www.bigfurnituregroup.com
