Caxton parent improves operating profit but currency exchange rates result in first loss since 2005

28th August 2009 | manufacturing | British furniture manufacturing group Woodberry Bros & Haines returned its first loss in four year after a 24% swing in the sterling/euro exchange rate cost the firm the best part of £1m from its Euro bank account.

The pre-tax loss of £143k masked a 6.8% rise in operating profit to £1.27m, on 12 month sales of £18.31m. Direct turnover comparisons on the prior year aren't possible as the firm filed figures for a 14 month period to the end of 2007. In the 12 months to the end of October 2006 and October 2005, sales were £25.02m and £20.34m respectively.

The firm said the closure of its loss making Woodberry Kitchens operation towards the end of 2007 accounted for more than £3m of the turnover shortfall, with sales from the firm's other brands including Caxton and Bath Cabinets being in line with internal forecasts.

Woodberry Bros & Haines said it had developed a strategy with its bankers to mitigate its exposure to currency dealings by converting its Euro liability into sterling at a rate of 1.15 which would lead to a £410k gain in 2009.