Relocation costs hits Comfy Quilts as sales leap
FAMILY-owned bedding company Comfy Quilts has seen sales rise by nearly 25% to £77.1m during a busy year which saw it acquire a business in the North East.
Despite the surge in sales operating profits fell from £2.1m to £1.2m as a result of one off costs of £900,000 relating to the relocation of Ikea supplier Snug Textile’s business from Gateshead to the North West.
Pre-tax profits fell from £2.1m to £228,299 in the year to the end of June 2013.
Owned by the Moryoussef family, Comfy Quilts has its head office in Wilmslow, with a manufacturing and warehousing operation in Middleton. During the year it increased its headcount from 222 to 358.
Commenting on the performance and future prospects in his directors’ report director Max Moryoussef – who runs the business with his son Jamie – said the relocation of Snug had taken longer than expected, but this would lay the foundations for profitable growth in future years.
“The current year has started well with continued sales growth despite continuing adverse economic conditions.
“The relocation is taking longer than initially anticipated and had continued into the current year. The benefits of the consolidated warehousing, relocation and continued investment in manufacturing will result in increased capacities, the benefits of which will be realised in the second half of the current year.
“The board believes the restructuring will create a strong platform for profitable growth in future years and enhance the group’s ability to service its growing customer base.”
The company closed the year with shareholders’ funds of £11.1m, up from £10.3m in FY 2012.