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

Star wood furniture, is located in the central jawa indonesia was established by Mr.Khanan . Its key aim is to provide the best contemporary designs in the country for the entire world and providing essential household furniture. We have been bringing beautiful furniture and accessories to world from Indonesia, We are known for our incredible collection of furniture crafted from teakwood. Star wood furniture has sought out skilled craftsmen to create our original designs and to showcase their unique pieces. This combination has become a collection that is constantly evolving and reinventing itself. All our furniture is 100% machine made and built to last for generations. STAR WOOD is able to make all kind of furniture for HOTELS,RESORTS Read More