Cushion company completes turnaround by breaking US market
Knowsley-based cushion manufacturer, Caldeira, has announced a 15% rise in UK sales and a return to profitability in its latest financial results out today (September 16).
The company’s turnaround has been completed thanks to additional export sales, with revenues in the US exceeding those in the UK – £4.4m – for the first time.
The firm has elected not to publish its full turnover and pre-tax profit figures for the year, or previous year, in accounts filed with Companies House, but said it made profits of just under £500,000 in the period to June 30.
Cash at bank and in hand was £126,684, compared with £69,661 the previous year.
Net current assets stood at £913,862, up from £205,194.
Calderia’s average number of staff during the year was 40, compared with 36 in 2018.
Profits have been re-invested in the business and used to repay debts to strengthen the company’s balance sheet.
Company founder and owner, Tony Caldeira, gave credit to his management team, saying: “The great young team here at Caldeira has worked extremely hard to help improve margins and the performance of the business around the world.
“This has enabled the company to complete its turnaround and return to profitability.”
Mr Caldeira, who unsuccessfully stood for the Conservative Party in 2017 in the Liverpool City Region Metro Mayoral Election and General Election, was particularly pleased about the company’s export sales, adding: “I’m proud that for the first time Caldeira has sold more products in the United States than it has in the UK – God Bless America.”
With the rise in the company’s exports to North America, Mr Caldeira says he is hoping that the UK can do a trade deal quickly with the US following Brexit.
“At the moment our US customers are paying an extra 7% duty on our products. If there is a trade deal between the UK and US, this duty could be removed which will make our cushions even more competitive.
“For Caldeira, this would lead to more sales in America and more jobs here in Merseyside.”
He added: “The sales team are currently in our New York showroom for an event called the New York Home Textiles Market. I’m sure they would be coming back with even more orders, which would be shipped through the Port of Liverpool, if the duty was removed.”
Caldeira said it has enjoyed a strong start to its current financial period on both sides of the Atlantic and expects sales and profits to rise again during its next financial year.