Furniture wholesaler and distributor Classic Furniture has reported a drop in both sales and profit for the year ended 30 September 2015, with the business ‘planning’ for the reduction due to increased pressure within the independent retail sector.
Total sales for the year under review fell by 5.8% to £11.3m from £12m in 2014, while operating profit shrunk by 35.7% to £771,822 from £1.2m. Overall profit for the period resulted in £591,654, 38.3% down from its recorded profit of £959,866 last year.
The Market Rasen-based company said that ‘pressure in market demand in the independent sector’ resulted in the decline, as expected, allowing the business to ‘absorb’ the reduction following a revised operating structure during the year.
Net assets reduced to £3.1m from £3.3m in 2014, as the company developed and invested in new products, while overall working capital continues to be well managed.
Within the strategic report, Classic Furniture added: “The company continues to invest in growth and is looking to access new markets with the next 12 months.”