Furniture manufacturer returns to profit as sales rise

Furniture manufacturer ercol has reported an increase in sales and a return to profit.

According to its latest filed accounts for the year ended 31 December 2025, total sales rose 3% to £19.7m from £19.1m in 2024.

EBITDA stood at £1m, while pre-tax profit resulted at £398,000, improving from a loss of £161,000 recorded in the previous year.

UK sales were up to £19.5m from £18.7m, while EU sales dipped to £51,000 from £97,000. Rest of the world sales declined to £198,000 from £293,000.

Stated within its report, the company said: “2025 built on the improved performance from the prior year to deliver a bottom-line profit. Turnover increased 3% compared with 2024 with a renewed focus on our core UK market and the first full year of the Ercol Franchise Store in Chelsea.

“Gross margin increased from 30.6% to 32.3%, which is further evidence of a continued efficiency drive in both our factory made and outsourced product.

“The company reported a positive EBITDA of £1,020k, which is an improvement of £441k on the prior year. This improvement has been driven by the improved gross profit. It also means that EBITDA has increased by £901k over the last 2 years.

“The on results have been achieved over the last 2 years with development on turnover through better focus core markets, efficiency drives in production and purchasing and right-sizing of overheads relative to gross profit.”

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