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.