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Sales have passed the £50m mark at Airsprung Group, the Wiltshire-based bed manufacturer which can trace its history back to 1870. However, profitability has been affected by costs incurred relating to the sale of one of its brands.
The group’s brands currently include Swaglan Furnishings, Hush-a-Bye Beds, Gainsborough and Cavendish Upholstery. It employs more than 500 staff at its Trowbridge head office and across its sites in Chorley and Bristol.
According to recently filed accounts for Airsprung Group Plc, turnover grew to £52.7m in the financial year ending 31 March 2016, up from £48.6m in 2014/15.
The company reported a pre-tax loss of £687,000, compared to a profit of £221,000 the previous year.
Costs of about £1.1m were incurred relating to the impairment of goodwill and intangibles of the Collins & Hayes business, which was sold following the year end.
Operating profit, before depreciation, amortisation and exceptional items, was £1.84m, up from £1.4m the year before.
Airsprung said that, following a review of its upholstery interests, it was concluded that the business “would be best served under different ownership”. As a result, in July 2016 it was sold to Wessex Bristol.
The group originally acquired Collins & Hayes, which can trace its history back to 1885, for £2.3m in 2010.
In their report accompanying the accounts, the directors said: “Financial year 2015/16 saw a significant uplift in operating profits for the group, before including the goodwill and intangibles impairment cost, finishing ahead of both internal annual budgets and well ahead of previous year. Revenues from sales of the group’s products were up year on year by 8.5 per cent.
“This strong sales activity was driven by increased demand from long standing customers as well as from income streams provided by new customers during the year.”
They added that the group was “very well placed to grow its business in all of its activities” in 2016 and in the future.
Airsprung Group products are sold in stores including House of Fraser, Debenhams, DFS and John Lewis.