airsprungFactoryAirsprung’s mattresses and bed bases sold strongly in the year to end March as the Trowbridge group posted a five-fold profits uplift.

The Wiltshire supplier—which besides beds runs upholstery, foam, headboards and marketing divisions—grew group revenue by 5.7 per cent to £48.6m in 2014–15.

Of that, beds sales were up by 11.8 per cent* to £36.9m (+£3.9m) while revenue from other activities fell 9.7 per cent to £11.7m. Sales to the group’s two biggest customers increased by 7.1 per cent to £25.4m.

The group—whose customer base includes retailers such as Argos and Shop Direct—sells beds under the trade names Airsprung Beds, Gainsborough and Hush-a-Bye Beds, while its other products and services are sold via its Cavendish Upholstery, Collins & Hayes, Airofreem, Swanglen Furnishings and Arena Design business units.

Group gross margin dropped 70 basis points to 28.2 per cent though the total revenue gains were enough to see EBITDA up 46.7 per cent to £1.4m and consolidated pretax profit nearly five times as high at £737,000.

Its beds division posted adjusted pretax profits up 50 per cent to £2.2m while the rest of the group narrowed its adjusted pretax loss to £695,000 (2014: £1.1m).

Airsprung Group—owned by Andrew Perloff since 2011—generated a net £585,000 cash from operations, having used £24,000 the prior year, and ended the year with cash and equivalents broadly constant at £1.8m, after other outgoings including £721,000 net capital expenditure.

Despite its profit improvement, total gains and losses were negative, as a result of a £4.4m actuarial loss on its defined benefit scheme, which pushed the group’s pension scheme deficit to £10.8m (2014: £7.4m).

* The 11.8 per cent growth figure is based on the beds/other goods sales breakdown provided. In the group’s commentary, it refers to lower bed brands growth of 9.8 per cent