Beds and upholstery manufacturer Airsprung Group has posted a growth in revenue, although end of year profit was impacted by the disposal of Collins and Hayes Furniture Limited.
According to its latest filed accounts for the year ended 31 March 2016, total sales rose by 8.5% to £52.7m from £48.5m in 2015, largely fuelled by ‘increased activity with long standing customers as well as adding several new income streams during the year’.
Gross margin slightly fell to 26.9%, whilst net margin before exceptional operating items achieved improved growth, up to 2%, with net cash generated up to £752,000 from £585,000 in 2015.
Airsprung said the year saw continued growth in Group sales and profitability, driven predominantly by beds and its related businesses, with growth being enjoyed across the market sectors served.
Stated within the report, the review of the group’s upholstery interests that commenced in early 2015 was concluded in spring 2016.
Airsprung said: “A review of the Group’s upholstery interests concluded that the Hastings based Collins & Hayes business would be best served under different ownership and was subsequently disposed of after year end to an integrated retailer/manufacturer.
“This leaves the Group in a strong position to further concentrate on what is considered to be core activities. As a result of this, goodwill and intangibles relating to Collins & Hayes have been impaired, with a net impact of £1,081000 to the Consolidated income statement.”
The Group reported a net cash growth, generated from operating activities, to £752,000 and was primarily applied to ‘investments in fixed assets for use in the business’ and the ‘pay down of the loan facility’.
The Board added that it believed the group ‘is very well placed to grow its business in all of its activities in the coming year and beyond’.
Wiltshire-based Airsprung is a recognised manufacturer and supplier of beds, headboards and upholstered furniture to the retail and contracts sectors, with brands including Airsprung Beds, Gainsborough and Hush-a-Bye.