from its Kensington range
Turnover at a park homes manufacturer has increased, despite a drop in demand.
In recently filed accounts at Companies House, Abercarn-based Stately Albion recorded an increase in turnover from £32.6m to £33.3m in the year ending July 31, 2018.
However profit before tax dropped to £846,000 from £1.78m in the year prior.
Stately Albion manufactures a range of lodges and park homes from its base on the Prince of Wales Industrial Estate.
The company also owns and operates the Kirklees Light Railway, a 3.5 mile long heritage railway attraction in West Yorkshire.
Following the year end, the company made the decision to reduce manufacturing capacity for the current year.
A statement accompanying the results said: “The directors report that the demand for homes was beginning to reduce from the high levels of the past few years during the year ended 31 July 2018. The company experienced a significant fall in demand after the year end.
“The competition in the market has kept the pro?t margins of the company at a level which is competitive in the Park Homes market, but the directors continue to seek to improve this through developing new techniques and adapting manufacturing processes.
“Other park home manufacturers have increased manufacturing capacity in the last few years in response to the high demand for park homes.
“This has had the effect of increasing the supply of homes to meet the demand and prices of homes have remained very competitive. Gross margins have reduced again this year for the company under these pressures of increased supply and flat demand.
“The company had increased its productive capacity in previous years. This activity has used cash resources over the year.
“The directors’ observation of reduced demand for mobile homes has resulted in the directors decision to reduce manufacturing capacity after the 31 July 2018.”