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sofaBrandsSofa Brands International posted double-digit top and bottom line growth in the year to end June with its Parker Knoll brand among its stellar performers.


Group sales* grew 13.5 per cent to £90.5m buoyed by strong demand for its Parker Knoll product range, which was up by almost 30 per cent year-on-year, the upholstery group said.


Turnover at its G Plan and Duresta brands made good progress, it added, with group underlying profits rising by 17 per cent to £6.7m.


CEO Scott Malvenan said: “I am delighted to report the progress we have made in all three brands despite quite challenging conditions arising as the year progressed. Our brands performed strongly in the UK well into the second half of the year when, as expected, the general election then cooled demand.


“Political instability abroad held back exports in our luxury brand [Duresta] as trade with Russia and its neighbouring territories dipped significantly. Demand in China also declined as the economy slowed in comparison with previous trends.”


Mr Malvenan added that its operating costs rose during the year as it built capacity to match the increased demand for its products, with the group strengthening its management team in a number of key areas.


He said: “Investment in our new enterprise resource planning (ERP) system was also substantial and implementation of this across our group will continue. We will invest further in our people, products and operations to strengthen the group. Trade remains challenging with the UK retail scene continuing to prove unpredictable, while exports to Russia and China are unlikely to recover quickly. We are working on a number of collaborations to strengthen our product offer, and we recently reacquired the cabinet rights to the G Plan brand. I am very excited about the momentum we are building in many areas.


The group ended the year with net cash of £2.5m (2014: £3.1m) and shareholder funds up by £2.5m to £21m.


* The figures were released by the group ahead of the accounts being publicly available at Companies House. Sales are gross sales ex-VAT but before rebates and discounts; underlying profits are group profits before interest and tax excluding transaction related payments.

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