IT'S high profile administration in 2011 seems to have worked for Brintons Carpets, as the Kidderminster-headquartered company has announced profitability in its second full financial year since the move. The rise in earnings of more than £5m at the luxury brand came despite broadly flat sales.
Brintons, which is famed for carpeting Buckingham Palace, makes carpets in the UK, at its Kidderminster and Telford factories, Portugal and India. However, it is still searching for a buyer its surplus Chinese operation, according to the newly filed accounts for the 12 months ended September 28, 2013. The group, which was founded in the late 18th century, was rescued from the brink of collapse in September 2011 by US private equity firm Carlyle Group in a pre-packaged administration deal.
Sales in Brintons Carpets Ltd's second trading period since the pre-pack showed sales of £82.1m, down from £89.6m in its first year to September 2012. However, the first trading year was made up of 13 months, leaving sales flat on a pro-rata basis. The group's profitability climbed as it increased efficiencies and reduced its costs and exceptional charges.
Brinton had an operating profit of £1.7m and the company's pre-tax loss also shortened from £7.1m to £4.2m in the period, after £6.4m of interest payments on loans.
The directors said in their report accompanying the accounts that it was an "excellent" second period of trading, despite difficult market conditions.
"The business has consolidated on its strong performance in the previous period and has continued to increase efficiencies and reduce costs," the directors added. "As a result the group's profitability has again increased this year." During 2013, Brintons developed a number of new products, including anti-microbial Axminster carpets certified for use in hospitals and care homes. The group also refreshed and relaunched existing product ranges and opened a new sales office in Dubai to service the growing number of hotels in the region.
Brintons employs more than 500 staff in the UK across its Kidderminster and Telford sites, and about 1,500 overall.
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