Caldeira grows through recession
Posted on: 26th July 2010Caldeira, the Knowsley based home textiles group, continues to defy the tough economic climate with another year of strong sales growth in 2009.
The company, which is based at Knowsley Business Park, has seen its global sales rise by 28%, from £15.7m in 2008 to £20.1m in 2009.
The group is made up of four companies; Caldeira UK Ltd, the UK’s market leading cushion company; Caldeira China, a textile manufacturing operation based in Hangzhou, China; Caldeira USA which is based in New York; and Caldeira Retail, a 14 store home furnishings retailer which trades as “The Fabric Warehouse.”
All four divisions reported an increase in sales in 2009 and the group now employs over 400 staff around the world.
The group remained profitable despite pressure on margins due to the weakness of the economy, the weakness of Sterling and restructuring costs following the acquisition of The Fabric Warehouse in May 2008. Group post–tax profits for 2009 were £0.33m.
Following the company’s rapid growth, Caldeira is now required to file consolidated accounts, which exclude inter-company sales. Headline sales numbers for the group and its divisions are given below.
Prior to the need to consolidate its accounts, the group reported gross sales, including inter-company trading. Gross sales on a “like for like” basis between 2006 and 2010 are detailed below.
2010 Performance
In 2010 the group expects sales and profits to grow further despite the continuing challenging conditions.
Caldeira UK Ltd was affected by the collapse of the Ethel Austin/ Au Naturale business in the first quarter of 2010, so may see a slight fall in sales. However, the company still leads the UK cushion market and is the most profitable division in the group.
Caldeira China is still growing rapidly and has recently opened a 50,000 sq ft extension to its Hangzhou based facility to help meet the growing global demand for its products.
Caldeira USA is also growing quickly in an extremely challenging market. The US company, which is located on New York’s 5th Avenue, has recently added American retail giants Target Corp. and JC Penney to its client base.
Caldeira Retail should complete its turnaround phase during 2010 following continued investment in its stores, systems and product offering.
Commenting on the results, company founder and managing director Tony Caldeira said.
“2009 has been another successful year for Caldeira with sales growth in every business in the newly formed group.”
“The excellent team at Caldeira has performed really well in 2009, especially when you take into account the difficult conditions due to the recession, weak consumer demand and the state of the economy.”
“We have continued to invest in the businesses, even during the recession. This fact, as well as Caldeira’s strong balance sheet, low borrowing and global positioning, will ensure that the company will continue to do well in 2010.”
Group Finance Director Rob King is confident that there are still plenty of growth and acquisition opportunities for the business in the near future.
Commenting on the results, he said:
“The Caldeira group’s continued resilience through such a depressed trading period has put the group on a strong footing to continue its growth trend. Each of our four businesses is well positioned with significant organic growth opportunities.
Our strong financial position enables us to seek further acquisitions. A number have already been considered in 2010 and we are continuing to look for opportunities for each of our divisions.”
For further details please contact Karen Donnelly on 0151 290 1129 or email kd@caldeira.com
