Rugs business The Rug Company has reported a slight decline in sales as well as widening losses.
According to its latest filed accounts for the year ended 31 March 2024, total sales stood at £9.5m, down 5.9% from £10.1m in 2023.
Pre-tax losses resulted at £1.3m, widening from a loss of £347,000 recorded in the previous year.
Stated within its report, the company said retail sales fell 4.5% to £8.3m from £8.7m, while franchise sales fell 7.6% to £1.2m from £1.3m year-on-year.
As for its divisions, UK sales were down 7.9% to £6.9m from £7.5m, while EU sales jumped 76% to £1.2m from £681,000. Sales in the US rose to £754,000 from £729,000, while rest of the world revenues decreased to £560,000 from £1.1m.
The Rug Company said: “The macro-economic climate was challenging throughout FY24 which resulted in difficult trading conditions. Despite this, the business was able to increase gross margins, growing above 50%.
“The group continues to focus on the areas it believes will result in turnover and profitability growth, most notably digital with the business investing in a new re-platform which went live in FY25 and already seeing continued positive results.”
