Furmanac sees double-digit sales drop
Bed manufacturer Furmanac suffered a double-digit fall in sales in its most recent financial year.
Its annual accounts show that sales dropped by 11.4% to £13.21m in the year to 30 June 2018.
However pre-tax profits only fell by 7% to £427,764. Post-tax profits rose to £618,219 thanks to increased research tax credits.
Dividends were reduced from £336,731 to £251,427.
In the company’s strategic report director Gee Hilliard says it had introduced new working practices and materials to protect margins.
‘The principal activity of the business remains that of quality manufacture of adjustable beds, upholstered bedsteads, divans, mattresses and motion chairs with new innovations being added to the existing models under the established brand names of MiBed, MiChair and Hestia. New ranges of products have introduced to include the MiSofa collection of sofa beds and occasional furniture to accompany the bed ranges. Furmanac maintains it's top position in the adjustable bed industry in the UK.
‘The in-house research and development team continuously focus on the enhancement of the existing products and the introduction of new products to stay ahead of competition and to build continuous customer loyalty. The experienced sales and marketing team work closely with existing and new customers in maintaining good sales levels and satisfactory gross margins. There were several new customers who were in the pipeline at the end of the year, who have now become active after the 30 June 2018 year-end.
‘The financial results of the company show a pre-tax profit of £427,764 on less turnover than the previous year. The company has brought the outsource delivery arrangements in-house by investing in a new fleet of vehicles and dedicated transport team which has consolidated the efficiency and high standards of delivery. Throughout the year the company has been working on good margin business and have rationalised the overhead costs, by improving on existing methods and the introduction of advanced work practices.
‘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 are been continuously improved. Newer compositions of 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 director shareholders manage the business on a hands-on basis and work with an expert finance team on a regular basis to review all the key performance indicators to ensure the steady but solid growth of the business, keeping the risk factors at an absolute minimum. The directors are confident that the business performance is improving on daily basis and have a solid planning and control system, which has enabled the business to be steered in their right direction, increasing its strength as a company from one year to the next. The board of directors are supported by a highly motivated and loyal management team, making Furmanac a dominating force and one of the leading companies in the British furniture industry.’