Sofa manufacturing group TCM Living has reported a decline in sales as three of its four major brands experienced a reduction in revenues.
According to the latest filed accounts ended 31 December 2023 for TCM Living, the parent company of Alstons, Ashley Manor, Alexander & James and AMX Designs, total sales fell 23.1% to £106.2m from £138m in 2022.
Pre-tax losses resulted at £757,000, down from a profit of £1.1m recorded the previous year.
Stated within its report, the group said UK sales, its core market, had decreased 22.9% to £105.2m from £136.5m, while EU sales fell to £65,000 from £553,000. As for the USA, revenues remained flat at 95,000, while sales in Thailand declined from £335,000 to £269,000. Revenues in China represented £115,000.
In the UK, two of the group’s major retail clients, ScS and Furniture Village, saw a combined decrease in sales by 34% to £46.3m from £71.2m last year. This was driven by ScS as revenues fell 42.2% to £30.7m from £53.2m. As for Furniture Village, sales were down 13.3% to £15.6m from £18m. There was also another customer account reported in this set of results, which registered sales of £12.5m. As for the rest of sales, these resulted at £47.2m, down from £52.9m year-on-year.
Taking a closer look at the four brands, Alstons reported sales growth of 0.2% to £35.9m from £35.8m, with a pre-tax profit of £2.7m (up from £1.9m). Ashley Manor saw revenues fall by 11.5% to £31.3m from £35.4m and posted pre-tax losses of £2.7m, widening from a loss of £1.2m.
Meanwhile, Alexander & James reported a reduction in sales of 33.1% to £21.2m from £31.7m, with a pre-tax profit of £137,000, improving from its loss of £374,000, and AMX Designs saw revenues decrease 52.8% to £17.6m from £37.3m, with a pre-tax profit of £538,000, down from £1.4m year-on-year.
Despite recent market challenges, Andy Kennaugh, CEO of TCM Living, highlighted the company’s proactive approach to future growth. He stated: “TCM Living has been navigating the downturn in the market and the difficulties in the wider economic backdrop. We are working strategically to reinvigorate the company’s growth through our unique brands with a clear focus on our commitment to customers who remain at the forefront of our priorities in terms design, exceptional products and outstanding customer service.”
