A UK manufacturer of beds and mattresses, reported a 22.3% decline in sales for the year ending 30 April 2023, with total revenue falling to £10.8 million from £13.9 million in 2022. Despite this, the company recorded a significant rise in pre-tax profit, which increased to £906,000 from £379,000 the previous year.
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In its report, the company, Dreamland Beds, noted that 'turnover and operating profit have decreased in the face of competitive trading conditions,' highlighting ongoing challenges within the bedding industry. Several competitors have failed, and many continue to struggle despite economic improvements.
Dreamland Beds attributed its improved profitability to 'careful planning and knowledge of our industry,' enabling it to trade effectively at the right times. The company also pointed to 'competitive prices combined with improvements and labour efficiency,' which led to a gross margin increase from 30.08% in 2022 to 35.87% in 2023.
This performance reflects Dreamland Beds' strategic focus on maintaining business stability amidst a challenging market environment.
Source: www.bigfurnituregroup.com