Profits down at furniture firm as material prices rise

County Durham-based furniture manufacturer BHK (UK) Limited has reported a slight growth in turnover, although experienced a dip in profits due to increased raw material costs.

According to its latest filed accounts for the year ended 31 December 2016, total sales rose by 4.2% to £9.8m from £9.4m in 2015, as international revenues experiencing triple-digit growth.

Total UK sales were flat at £9.2m, whereas overseas sales more than doubled to £540,674, up by 160.8% from £207,186 last year.

The Peterlee-based company, which specialises in the Manufacture of chipboard, MDF and plywood drawers and bases, reported a pre-tax profit of £70,372, significantly down from £1m recorded last year, citing the final two quarters suffering from unfavourable currency movements.

BHK stated within its Report that due to the Brexit vote, raw material prices rose, which reflected in the company increasing its own selling prices.

In January 2017, BHK had escaped a fine after admitting it had been involved in illegal cartel activity with two other furniture firms Thomas Armstrong (Timber) Ltd and Hoffman Thornwood Ltd, who were fined £2.8m.

The Competition and Markets Authority (CMA) investigated two separate infringements including the supply of chipboard and MDF-based drawer ‘wraps’ to the Bed, office and domestic furniture Industry in the UK, between April 2006 and September 2008, involving BHK and Thomas Armstrong.

BHK avoided punishment provided it continues to fully co-operate with the CMA, and complies with conditions of the CMA’s leniency policy.

About Starwood Furniture

Starwood Furniture is located in Central Java - Indonesia. It has been contributing to the furniture industry since 1990. Offering the world, extremely durable and environmentally friendly contemporary designs. Starwood Furniture has paid great attention to provide unique solutions in wood world based on personal taste and architectural style. We have a reputation offering perfect wood accessories and customized wooden houses to the world from Indonesia. To meet every demand and taste, we develop furniture with different variety of woods which creates a perfect balance between cost and equality. Starwood Furniture has professional, creative team and dedicated craftsmen who create our original designs to suit the industry and special care is taken to build, indoor and outdoor furniture which last for generations. Starwood Furniture has catered to Hotels, Villas, Resorts, Apartments, Restaurants and we are the first to offer Wooden Houses to the world. Read More