The parent company of bed maker Hypnos, Keen & Toms Holdings, reported strong sales in a year that saw a major operational restructuring.
According to the latest accounts filed for the year ending 1 July 2023, total sales were £64.9m, up from £64m in 2022. Pre-tax losses were £2m, down from a profit of £933,000 recorded the previous year.
The group, which owns the Hypnos and Keen & Able brands, said in a report: “During the period covered by this report, following the appointment of a new Group Managing Director, the Group Board conducted a strategic review of the Group’s performance across individual operating companies, sites, teams and leadership.
This was done with the aim of “de-sizing” the group’s business and divisions, eliminating loss-making operations, reducing operating costs, and enabling strategic investments, by simplifying the business model ahead of its 120th year.
“A key part of this simplification of the group was the decision to refocus on the core Hypnos business, upholstery and bed fitting, where its proprietary warranties are retained. This has put the business in the strongest possible position to celebrate its upcoming centenary, and has included the loss of a volume account for the Hypnos Contract bedding division.
The Board of Directors has taken the decision to cease business operations of Keen and Able Limited, a two-person logistics company, including exiting its three designated locations.
“Improving operations at Hypnos Contract Beds by reducing it to one core site, in total the company has agreed to exit four sites through this process, focusing on its owned site at Princes Risborough, and the leased site at Castle Donnington.
“Executive leadership will continue to strategically monitor and improve its operations, to improve performance and generate sustainable business results.”
Furthermore, operational changes have helped the company reduce production and delivery time to 2-4 weeks, despite new customers, collections and growth, as well as the creation of two new strategic partners as part of the restructuring of contract manufacturing in Europe.
Within its divisions, bed maker Hypnos reported sales of £40m, down slightly from £40.4m, with a profit of £321,000, down from £1.2m. Meanwhile, Hypnos Contract Beds, which supplies hotels and hospitality properties, reported sales of £20m, down from £28m. Profits were £129,000, an improvement on its £1m loss.
