Bedding group tucks into foreign markets

INCREASED demand in Poland has helped bedding manufacturer John Cotton boost profits and see sales spring up.

Pre-tax profit climbed up to £6.9m from £2.3m and turnover for the year ended March 3 2013 grew to £127m from £122m. Operating profit increased to just under £7m from £2m in the previous year.

The Huddersfield-based manufacturer of pillows and duvets, which was launched in 1916, said following the tender for a contract with a major retailer, sales in Poland have increased. Demand for the group’s products have increased by 4.4% during the period and gross margin has increased to 16.4% (2012 12.5%) because of improved factory efficiencies, according to the latest results filed on Companies House.

John Cotton employs almost 850 people and said it continues to regularly invest in research and development in order to “continually explore further innovation in both new and existing products”.

The business said it continues to invest in new capital equipment to order to remain competitive and reduce its cost base wherever possible.

Despite admitting there are “challenging trading conditions” the group added: “The group ends the year in a reasonable financial position, which should enable it to meet the challenges that will occur during 2013/14 as a result of the adverse economic conditions which are being experienced in the UK and Europe.

“The directors are optimistic about the future despite the increasing market and economic pressures. The directors are confident that the group has structured itself in a way to meet the on-going changes in the global economy.”

Close