Argos furniture supplier says trade is better than expected; Profits back on track

26th November 2009 | volume | White label manufacturer Addspace Furniture says promotional activity by key stockists Asda and Argos is helping it trade ahead of forecasts in the first quarter of its financial year.

It also says sales in the latter part of the year have been boosted by an increased product listing with multi-channel furniture giant Argos, after previously showing month by month falls.

Addspace, a flat-pack furniture manufacturer based in Yorkshire, saw overall turnover for the year to the end of September fall 13% to £8.2m, but an improved operating performance helped it grow pre-tax profits to £243,208 - up from just £1,726 in the year to last September.

The firm also says the full effect of its delay in price increases is now being reflected in improved margins. Average staff numbers at Addspace dropped by 37 to 82 during the year.