Brexit vote impacts UK performance for Chinese sofa conglomerate Man Wah Holdings, as revenue fell by 32.5%.
According to its latest interim results for the six months ended 30 September 2016, Man Wah said that sofa sales within its European and overseas markets experienced a decline of around 16.3%, with the UK driving the downward pressure due to currency fluctuations following the referendum vote.
Man Wah highlighted that the Brexit vote ‘brought greater pressure on the growth prospects in Europe’, with the UK experiencing a 12% sterling decline against the US dollar at the start of the year, whilst seeing a 5.7% fall in the second half, ‘further impacting revenue growth in the region’.
Elsewhere, the group highlighted a reduction of 17.7% in the North American market, while in its home market of China, sofa retail sales grew by 14%.
Overall group sales fell by 2.7% to HK$3.5bn from HK$3.6bn in 2015, with a profit for the period growing to HK$8.5m.