Relocation of subsidiary impacts office furniture manufacturers bottom line

Manufacturer of innovative office, reception and meeting room furniture, Frem Group, has reported static sales while profit slips to a loss.

According to its latest filed accounts for the year ended 31 December 2019, total sales resulted at £11.9m, on par with its previous set of results, rising by 0.16%.

Gross profit reduced from £4.1m to £3.6m, while its pre-tax profit of £355,000 recorded the previous year, fell to a loss of £46,000.

Stated within its report, the company said that the results were adversely impacted by one-off costs resulting from the relocation of the subsidiary Frem Group Screens Limited during the year.

This led to losses in that subsidiary, whilst the rest of the group remained profitable.