Furmanac finds £2.5m of cost savings
Adjustable bed and upholstery manufacturer Furmanac cut costs by £2.5m in the past financial year.
The company’s latest accounts show that pre-tax profits fell from £988,974 to £786,658 as turnover fell in the year to 30 June 2017. Turnover was not disclosed but in the previous year it had been £17.88m.
‘The financial results of the company show a pre-tax profit of £786,658 on a lesser turnover and slightly improved net profit percentage. One of the key features of the current years performance is the reduction of the overheads by £2.5m from the previous year,’ said John Hilliard, Furmanac md.
Staff costs were reduced by £2.12m as employee numbers dropped from 224 to 143.
‘Like many businesses in the UK, the economic climate and uncertainties over Brexit has had an impact on the thinking of the owner directors of the business to structure the organisation to be least affected by external factors. To this end production techniques have been modernised. Newer and advanced raw materials and components have been introduced to stabilise the margin on sales, despite the increase in the costs of raw materials. As part of company policy, emphasis is on quality margin business, to match the innovative product range and enhanced service offered. The result has been to arrive at a unique quality range, whilst still maintaining competitive pricing. The company maintains its standing as the leading adjustable bed manufacturer in the UK under the brand name of MiBed, whilst extending its prominence under the brand names Hestia and MiChair.
‘Whilst maintaining a good profit, substantial sums have been invested back into the business in terms of research and development to maintain the competitive edge the company enjoys and to take advantage of the additional requirements of the existing and new portfolio of customers. The current customer loyalty, and the growing customer base, offers Furmanac a solid future to maintain its strong position in the industry.
‘The increased day to day involvement of the owner directors, has created an exciting entrepreneurial platform for customers, suppliers and staff alike. The board of directors are supported by a highly motivated management team, making Furmanac a dominating force in British industry.’