Recession cuts Karndean profits by more than 40% but margin remains stellar

13th November 2009 | flooring | Design floorcoverings supplier Karndean International suffered a £10m year on year sales shortfall through 2008, with pre tax profits down to £6.9m from £12.3m the prior year.

The Worcestershire based company, which enjoys a strong consumer brand for its vinyl floors sold through its retail network, posted sales of £38.3m - down from £48.4m in 2007, in accounts just lodged with Companies House.

UK sales were hit hardest - down more than £13m to £34m, while EU sales rocketed, from £0.8m in 2007 to £3.6m. Sales to the rest of the world also trebled, but from a more modest £0.2m base.

The company described its performance as 'satisfactory', and said it expected the effects of the retail downturn to last for a 'reasonably long period.' They were also the first accounts to incorporate the results of subsidiaries Design Flooring International and Design Flooring International (South) - both of which were acquired at the back end of 2007.