Greenwood defies sluggish market

HISTORIC carpet manufacturer Greenwood & Coope has increased sales and operating profits against a backdrop of lower consumer spending.

The Lancashire business, which operates from two mills in the Rossendale Valley and has its own distribution arm, recorded a 4% increase in turnover to £63m for the year to September, 2009.

This was matched by a 4% rise in profit at the operating level to £2.6m. Pre-tax profits dipped 5% to £2.7m.

The business was founded in 1956 by chairman Neville Cormack and was one of the first carpet manufacturers in the UK to produce tufted carpets. Private equity house 3i holds a minority stake in the firm which employs 211 staff.

In recently-filed accounts directors of the company, which trades as Cormar Carpets, says the higher sales reflect the firm’s investment in new product ranges.

In their report they draw attention to the tough trading conditions caused by a tightening of consumer spending and the impact of fewer houses being built. The weaker pound has protected the firm against cheaper imports, but the fluctuating oil price has affected the costs of production and distribution.

The report states: “Our view is that next year will continue to be a difficult market for the sale of our products. Nvertheless we are approaching the year in fair shape and with an awareness of, and healthy respect for, the many challenges that lie ahead.”