addspaceFurnitureProfits fell at flat-pack furniture maker Addspace in the year to end September despite what it described as an ‘excellent’ increase in sales.

The Rotherham based self-assembly furniture firm said margins were under more pressure and pre-tax profits fell 38 per cent to £230k.

Most of the declined happened in the second half of the year and was principally caused by the loss of supply of the largest volume bedroom range into Argos, the privately owned firm said.

It added that some volume was recovered with its Squares range of storage units (pictured above) going into Argos, but it said this was a commodity range at lower margin.

Overall sales — however — climbed 4.1 per cent to £7.9m, buoyed by rising sales to 2p2m, a co-owned furniture retail business run and part-owned by former Asda furniture buyer Matt Mason (see related).

Parent company Audacia Holdings posted group profits before tax of £518k (2013: £547k) on revenue up 7.6 per cent to £8.2m.

RelatedStrong first year sales for ex-Asda furniture buyer’s online furniture store