Hypnos sees profits return above £1m

Bed manufacturer Hypnos saw profits return to more than £1m in its most recent financial year. The company also saw sales almost return to pre-pandemic levels.

Pre-tax profits rose from £739,983 to £1,294,077, an increase of 74.8% in the year to 25 June 2022. 

Turnover jumped by 28.7% to £40.48m, just short of 2018/2019’s £41m. No dividend was paid.

‘During the period covered by this report the continuing impact of COVID-19 was felt throughout the company, particularly during the first six months. During the period from July to October we faced a significant loss of staff, including several highly trained operatives at short notice, reflecting post-Brexit employment conditions. This hampered the group’s ability to achieve budgeted revenues during the first half at a time when we were experiencing record demand for Hypnos products and services reflecting our focus on product innovation and the environmental and sustainability agendas,’ says the company’s strategic report.

‘The company embarked on a new and innovative recruitment and retention improvement drive and invested heavily in staff salaries, wellbeing, culture, training, and other benefits to attract new, and retain current, employees. This was very successful and by the end of December staff numbers were back to normal. Within the retail business also, we had the strategic appointment of a new operations director to further accelerate improvements in production efficiency and performance.

‘Due to the hotel market taking longer to recover post Covid-19, our Castle Donington factory, a dedicated facility for the hospitality sector, was to a large degree, acting as a sub-contractor to our retail business for the July to December period during which time contribution to its own overheads was negligible. lt only traded in its own right from January to June, in which it was profitable.

‘Significant raw material price increases and energy costs having put pressure on margins and the company often had no choice but to pass these increases on to its customers, but due to the sometimes very long lead times, there would be a delay before the group realised the benefit of these increases. Lead times are now back to a normal 4-6 weeks.

‘During the period, we have continued to invest heavily in product development and sustainability. We launched our ground-breaking Organic collection, endorsed by the Soil Association and our national charity and sustainability partner, the Eden Project. We launched our successful Hospitality Origins collection to the hospitality market and further developed our traceable wool initiative by sourcing wool direct from Waitrose farms for our John Lewis ranges.

Despite the challenging start to the year, the second half proved much stronger and saw a satisfactory recovery. The company has continued to invest in product development, the Hypnos brand, manufacturing efficiencies, property consolidation, systems and its people and is confident that it is setting a solid platform for growth over the coming years.

‘The period to June 2022 was once again impacted by the effects of the Covid-19 pandemic. Whist none of the businesses needed to close, we often saw higher levels of Covid-19 related absenteeism and labour shortages, and this restricted our ability to achieve budget revenue in some months, despite the order book being full.

‘We remain confident that supply chain issues have subsided to manageable levels and that our recruitment and retention policies, as revised, better serve the business to achieve its objectives through 2022.’

‘Like many companies, trading conditions in 2021-22 presented a unique set of challenges but as a resilient business, we were well placed to overcome these and create new opportunities. We remain confident that supply chain issues have subsided to manageable levels and that we are driving towards our ambitious growth objectives. As part of this, we continue to invest in all areas of our business, delivering the levels of innovation which our discerning customers require. This ensures we’re creating the highest levels of comfort, quality, durability, and design, all without compromising on sustainability,’ says James Keen, Hypnos ceo.

‘It goes without saying that sustainability remains at the heart of everything we do, and new partnerships with the Eden Project, and our work with partners such as Red Tractor and Soil Association, mean customers can be assured that by choosing Hypnos, they will be doing the right thing when it comes to protecting the wider world. This strategy, and the force for good actions we take within it, continues to position Hypnos ideally to deliver on our promise of “comfort with integrity”. The business is now focused on developing its platform for a successful future through its 120th anniversary in 2024.’

Hypnos Pillowtop Elite mattress 2

Subscribe

And receive a glossy copy of our magazine straight to your door

Subscribe to our newsletter

Receive weekly industry news straight to your inbox.

I agree with the Terms and Conditions and the Privacy Policy detailed at the bottom of this website.