Sales heat up to £406m for kitchen maker Magnet's owners

Darlington-based Nobia Holdings UK reports an 8% lift in sales due to rising consumer confidence

Somerton Fern kitchen by Magnet
Somerton Fern kitchen by Magnet

Rising consumer confidence last year triggered an 8% lift in sales at the owner of kitchen manufacturer Magnet, enabling the firm to post turnover of £406.9m

Darlington-based Nobia Holdings UK said renewed optimism in the home improvement sector helped to drive the rise in revenue in the year ended December 2013, from £375.5m to £406.9m.

Its bottom-line profits were also transformed, placing the firm back in the black with profits of £11.8m from a loss of £710,000, while operating profit soared from £3.9m to £18.3m.

But those figures were skewed by the fact that they also include the financials of its County Durham-subsidiary, Magnet Limited – figures which used to be filed separately – as part of a move to bring all of Nobia’s UK activities into one report.

The accounts filed at Companies House detail how, until December 31 2012, Nobia Holdings UK was a holding company for other group companies as well as the manufacture and distribution of kitchens.

During 2013, however, the company entered into an undisclosed agency agreement with Magnet Limited, which means the financial statements include the results from the Magnet brand.

A spokeswoman from the firm’s parent company in Sweden, Nobia AB, said: “From 2013 all of Nobia’s UK operations, including Magnet, are consolidated in Nobia Holdings UK.

“The agency agreement is about collecting all operations under one principal, accordingly one statutory report.”

Reviewing the business, the directors said it operates in a competitive market place “where continuing growth is dependent on maintaining existing customer relationships and developing new business by offering high quality products and services.”

The firm also said it constantly carries out research and development into new kitchen products, and that it is exploring emerging markets.

The directors’ report said: “The group’s business performed well during 2013. Turnover was 8% up on 2012 and profit for the year was £11.8m.

“At the year end the group had substantial cash reserves and net assets.

“The key to success is to leverage the group’s position through the premium which its service offering demands.

“Competition within the markets is a continuing risk to the group, which could result in it losing sales to its key competitors.

“The group mitigates this risk by providing value added services to its customers, having fast response times not only in supplying products but in handling all customer queries and by maintaining strong relationships with customers.”

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