Liverpool flooring products manufacturer QA Flooring Solutions is reporting a £1m fall in pre-tax profits amid a reduction in consumer spending and a ‘challenging trading environment’. Tony McDonough reports
Liverpool flooring specialist QA Flooring Solutions is reporting a fall in both annual revenues and pre-tax profits as UK consumers tighten their belts.
Founded in 2011, Speke-based QA is one of the leading underlay manufacturers in the UK, offering a full range of flooring underlays and accessories. It is run by directors Quentin Clayson, Alan Clayson and Yvonne Clayson.
QA has posted its annual accounts for the 12 months to December 31, 2024, on Companies House. They reveal a 5% fall in revenues to £19.1m and a big fall in pre-tax profits to £995,377 – down from more than £1.9m in 2023.
This had a considerable impact on dividends paid to shareholders. In 2023 they shared £1.2m but this dropped to £217,718 in 2024.
Despite the fall in sales and profits, director Quentin Clayson revealed the company was prepared to continue investment in both staff and product ranges to “take advantage of the opportunities that will arise through this difficult period”.
Writing in the annual report, he said: “The trading environment continues to be challenging, affected by reduction in consumer discretionary spending.
“The gross profit percentage was strongly aided by improved margins following the expansion of the product range.
“Overheads were subject to inflationary pressure in the period, which was ameliorated in the main through increased property-related other income.”
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QA, which distributes its products throughout the UK and Europe and employs more than 30 people, faced logistical challenges as a result of disruption to global shipping in 2024.
This led to a decision to increase buffer stock levels, to maintain customer service, giving rise to an increased stockholding at the year end.
Quentin added: “The business recognises the current challenging worldwide economic conditions and the background of uncertainty that continues to prevail.”