Furniture components supplier Hill’s Panel Products (HPP) has reported a slight decline in turnover.

According to its latest filed accounts for the year ended 28 February 2024, total sales fell 1.9% to £34.4m from £35.1m in 2023.

Pre-tax profit resulted at £1.6m, down from £3m recorded the previous year.

Stated within its report, the company said: “The directors are pleased with the overall financial performance. Despite this performance, we experienced a modest downturn in sales, primarily driven by external economic factors. Rising interest rates and the increased cost of living has affected consumer spending, leading to a slowdown in some key markets.

“However, we have remained agile in our response, adjusting our sales strategies to meet evolving customer needs and maintaining strong relationships across our distribution networks. While these factors present challenges, we believe they are temporary, albeit they are expected to continue to have an impact into FY25.

“Looking ahead, the company is well positioned to manage the challenges that lie ahead and the directors remain optimistic, despite general negativity in the business press. We continue to invest in our people, technology, and production capabilities to stay ahead of industry trends and enhance operational efficiency.

“Our focus remains on delivering exceptional value to our customers, exploring new markets, and maintaining our strong market position. Our team within all areas of the business are a key to this success and we thank them for all their efforts.”