Upholstery manufacturer Sherborne has reported a decline in sales.

According to its latest filed accounts for the year ended 30 June 2025, total sales stood at £16.7m, down 11.5% from £18.9m in 2024.

Pre-tax losses resulted at £730,000, down from a profit of £22,000 recorded in the previous year.

Commenting on its results, Sherborne said: “Turnover dropped from the previous year. This was primarily caused by the loss of the final part of a major manufacturing contract. A degree of optimism from the early election in 2024, was turned on its head by a poor trading environment as consumer confidence reduced, especially in our maturer customer demographic.

“The difficult decision to make significant cutbacks in the business was made after the National Insurance raid on businesses by the new Government which increased our budgeted costs by a significant six figure sum.

“After a cost reduction process in the business, the Company traded with a better second half of the financial year and gross profit margins have improved by 0.7% overall. It is of note, that in a smaller business and with one-off re-organisation costs, the business has been able to generate positive cash flow in its operating activities.

“Moving forward, the introduction of product innovation, cost savings and the launch of two full ranges of furniture will result in an increase in market share in a very competitive market place. The business is benefitting from the new EOT model which the Company moved to in the year.”