Cabinet supplier Kettle Interiors saw sales jump last year but increased costs hit profits.
The company saw sales jump by a fifth to £21.5m in the year to 31 October 2020, but pre-tax profits dropped from £687,564 to £318,517.
‘The initial lockdown between March and June presented significant and unprecedented challenges. Not only were sales directly affected, but a significant drop in the value of Sterling against the USD, along with increased manufacturing and shipping costs, caused an overall 6% decrease in gross profits for the year to 20%,’ it says.
‘However, by adapting it service alongside a proactive sales strategy, the company has managed to grow its market share and increase its customer base. In particular, the last quarter of trading was very positive and we expect this momentum to continue into the next financial year. Looking forward to 2020-21, the company envisages a continued increase in turnover, profitability and gross margin as a direct result of the significant increase in customer demand for its furniture.’
Dividends increased from £312,000 to £401,021.
The company also repaid more than £550,000 of loans from its directors.
