Furniture manufacturer and wholesaler Addspace Furniture Limited has posted a fall in turnover for the first time in four years, as ‘consolidated’ product ranges effect performance.
According to its latest filed accounts for the year ended 30 September 2015, total sales fell by 10.8% to £7.0m from £7.8m in 2014, largely due to the loss of product ranges with a major retail client.
Addspace Furniture, a subsidiary within the Audacia Holdings group, revealed that its operating profit also experienced a drop to £30,637 from £242,404, while pre-tax profit for the period fell sharply to £13,035 from £229,676 recorded last year.
Commenting within the report, the Rotherham-based business said: “The result for the year represented a reduction in turnover, which was caused by the loss of product ranges with a major retail client due to their consolidation of product ranges.
“Margins were lower as a result. The effect of unsold returned product at the end of the season did have a detrimental effect on profit during the second half of the year.
“The market continues to be challenging but the new financial year has started better with profitability improving.”