Pulse profits spark as sales slip
THE company behind toaster and kettle brand Breville and Dirt Devil vacuum cleaners more than doubled profits in the year to March, despite a 7% fall in turnover.
Pulse Home Products, which is based in Royton, Oldham, saw profits rise from £1.3m to £3.1m, as turnover fell from £71.7m to £66.6m.
The company, majority owned by private equity firm Rutland Partners since a £51.5m MBO three years ago, also produces a range of products for celebrity hairdresser Nicky Clarke.
While sales fell the group shaved £3m from its operating expenses, from £24.5m to £21.5m during the year, newly-filed accounts at Companies House reveal. Staff numbers fell from 159 in 2009 to 114.
In their report the directors, led by MD David Allen, said Breville and Dirt Devil had been the stongest performers during the year in a tough market place.
“Building on the success of the prior year, the core brand of the group, Breville, continued to perform well in the UK small domestic appliances market place despite the economic slowdown.
“In addition the group’s floorcare brand, Dirt Devil, has delivered continued growth from 2009. Other brands within the group have not performed as strongly as they have in previous years but management are confident that their continued investment into new products will mean the group can continue to grow into the 2010/11 financial year and beyond.”
Accounts filed for parent company Pulse Home Products Holdings – which include interest and amortisation charges relating to the buyout in 2007 – reveal a bottom-line loss of £5.8m (£7.8m 2009) on turnover of £68.2m.
Mirroring the improved profitability of the main trading company, the group’s earnings before interest, tax, depreciation, amortisation and exceptional items rose to £5.2m from £4.2m.
The company did not wish to comment further on the results.
