A carpet manufacturer in the UK has reported a significant rise in profit despite a slight drop in turnover for the year ended 30 September 2024. Pre-tax profit more than doubled to £12.4m, up from £5.9m the previous year, while total sales declined 2.7% to £143.8m from £147.7m.
© Cormar Carpets
UK sales for Cormar Carpets fell to £139m from £143.1m, while EU revenues edged up slightly to £4.5m. Sales outside the EU dipped to £148,000 from £166,000. The company attributed the revenue decline to lower average selling prices but reported a 6.6 percentage point improvement in gross margin.
Cormar said margin gains were driven by "raw material procurement savings," strengthened sterling, and cost reduction programmes. The company highlighted "strong cost control and improved efficiency" as factors that allowed it to keep prices competitive amid a challenging market.
Demand for its carpets remained "robust" throughout the year despite intense competition. The company said it ended the year with margins above its long-term average and expressed optimism for the year ahead, supported by successful product launches and a continued focus on service and quality.
Source: www.bigfurnituregroup.com
