Rise and recliner supplier, Sherborne, has managed to so far weather the storm impacting a large portion of the specialist furniture industry and has increased its profits in its last financial year.
The company’s annual report, published this week, detailed how the UK manufacturer has mitigated the rising costs of raw materials in the last year thanks to good supplier relationships.
Sherborne shifted more than £24m of stock in the year ended 30 June 2018, virtually a mirror image of its previous accounting period.
Meanwhile, its operating profit grew nearly 80% to over £600,000.
The company’s report maintained that the firm has managed to stick to the highest quality materials, despite the cost increases impacting most furniture manufacturers.
It stated: “The business is not immune from competitive forces, but its rigorous adherence to quality in product and service have helped it weather the recent downturn for the furniture industry.”
Sherborne’s report put its profit growth down to continued business development efforts as well as cost re-engineering in business processes.
However, the furniture supplier noted that the impact of Brexit remains a “major uncertainty”, with no immediate clarity provided on Article 50 negotiations.
It noted that a ‘hard Brexit’, which could result from the UK leaving the EU without a formal deal, could “negatively impact” on future trading volumes while in the short term, consumer confidence could be damaged.
Sherborne’s directors anticipate similar levels of turnover in the business’s coming financial year but are cautious of the impact the increasing costs of raw materials combined with a weakening of the pound could have on profitability.
Earlier this month, Lisburn-based mobility manufacturer, Leckey Design, revealed that it is investing in its European site and has floated the idea of relocating its logistics from Northern Ireland to Germany because of Brexit.