Colchester independent maintains profit levels despite 14% turnover fall

8th October 2009 | independents | Hatfields of Colchester, one of the UK's largest family owned independent furniture retailers, suffered a 14.1% revenue drop to £7.9m in the year to 31st March, but limited the impact on profits by almost matching 2008 levels.

The firm, which runs two adjacent stores including a Hatfields 2 Go clearance furniture outlet, delivered a pre-tax profit of £269,813, down just 5% on the prior year's £285,972.

Hatfields has recorded consistent profit figures for each of the past five years, peaking in 2007 when it made £344k from a £9.2m turnover.

Its current sales are now back to 2005-2006 levels, but directors say they are hopeful that a first quarter sales uplift will continue through the rest of the year.

The firm said it had also made efforts to reduce the amount of cash invested in stock. Its balance sheet shows a 14% reduction in the past year to £1.03m.