Commercial floorcoverings manufacturer Polyflor has reported a decline in sales as profit increased.

According to its latest filed accounts for the year ended 30 June 2024, total sales fell 4% to £173.7m from £181.7m in 2023.

Pre-tax profit resulted at £42m, up 18% from £35.4m recorded in the previous year.

UK sales fell to £110.7m from £117.3m, while EU and Scandinavian revenues declined to £25.3m from £28.2m. Rest of the world sales increased to £37.6m from £36m.

Polyflor, part of the James Halstead Plc group, said: “In the UK many distributors were significantly affected by the decline in domestic carpet sales, which is not a product in our portfolio. Many looked to cut back on costs to offset sales shortfalls and increased debt costs.

“Inevitable, some distributors reduced their stock holdings of our products, and it is clear this affected our sales into the distribution channel. Whilst it is difficult to identify the exact impact, we believe this represented at least half of our reduction in UK sales.

“However, end customer service levels were unaffected and there were positive signs of investment by some of our distribution partners as the decline did not apply to every customer.

“Regarding the 6% reduction in UK turnover, of this manufactured sheet vinyl sales were 4% down with the luxury vinyl tiles 9% lower reflecting the greater exposure of LVT to the residential flooring sector.”