Lebus sees profits jump
Cost cutting helped upholstery manufacturer Lebus substantially increase pre0tax profits last year, despite a dip in sales.
Sales dropped by 4% to £39.1m in the year to 31 December. Pre-tax profits rose 28.1% to £1.25m. Margins were unchanged at 26.1%.
‘The fall in turnover occurred during quarters two and three, and coincided with the long spell of good weather. Turnover recovered in Q4, with sales to all classes of customer increasing. The decline in sales led to production capacity being reduced in Q2. However this was reversed later in Q43 and into Q4,’ says the company.
Overheads were cut by 7%, allowing the rise in profits.
‘At the year end, the momentum of Q4 carried on into Q1 2019. The budget for 2019 is to increase sales and profit and the start to the year is ahead of budget.
‘The main continuing uncertainty around Brexit has not had a direct impact on the business, neither on trade nor staff retention. Our view is that a hard Brexit will have short term impact on material supply. The business has limited capacity to hold extra stock.’