Profits boosted at kitchen manufacturer despite inefficiencies caused by new site
The company which runs national firms Wren Kitchens and Ebuyer has posted pre-tax profits of £17.7m on revenues of £607m during 2017.
York-based West Retail Group trades both sister companies. Publishing their annual results to 31 December 2017, the group said pre-profits were up to £17.7m from £11.9m in 2016 and revenues had risen 20% from £524m in the previous year to £607 in 2017. Wren Kitchen’s revenue was £406m, while Ebuyer’s stood at £202m.
In January 2017, Wren Kitchens opened its third manufacturing site in Yorkshire. Based in Barton Upon Humber, the facility is twice the size of the existing sites at Scunthorpe and Howden.
Director J Pullen said: “The new facility gives the company significantly more capacity than is currently expected but if the company is to keep ahead of demand and is able to meet its long-term goals in terms of expansion both in the UK and elsewhere then it is essential that it has a fully trained team and that the infrastructure is in place and fully operational.
“The additional staff and costs associated with the new facility have created some ineffectiveness in 2017 which have affected the company’s result, however, this was a conscious decision and the company believes that these inefficiencies will be rapidly removed once capacities increase.”
During the year, Wren Kitchens rolled out its virtual reality system for potential customers and had 63 showrooms – an increase from 55 in 2016. Pullen added: “The kitchen market is highly competitive and the company must therefore be alert to changes in consumer trends, the actions of its competitors and to new entrants in the market.”
Ebuyer, the online retailer of electrical goods, appointed four new directors during 2017 and its pre-tax profits stood at £1.2m – the same as 2016. Pullen said: “The electronics sector remains exceptionally competitive and with increased pressure on prices within the main markets in which the company operates.”
He added that the company was prepared to withstand this pressure, and the extra pressure that Brexit will also bring.
