Crown Paints has reported a pre-tax loss of £16.1m for 2023, more than double the previous year's loss of £8m, despite an increase in sales. The Lancashire-based firm revealed in its delayed accounts that turnover rose from £202.8m to £214.1m over the same period.
The accounts were filed with Companies House on 27 December, after the 30 September deadline. In January 2024, Crown Paints, owned by Danish paints manufacturer Hempel Group, predicted a profit rebound after what it termed a "dismal performance" in 2022.
The company also reduced its workforce from 1,090 to 1,069 in 2023. A statement from the board read: "Crown Paints continued to focus on growth in line with our strategy with particular attention to scalable operations across the business."
"This was brought into sharp focus during 2022 when we saw material prices escalating together with supply chain challenges which were heavily impacted by geopolitical unrest."
The statement also highlighted tough market conditions due to high inflation, low customer confidence and the cost-of-living crisis, but noted that demand for paint products stabilised after a sharp decline in 2022, as reported by .
Crown Paints acknowledged the difficult decision to restructure the business in 2022, which it says was helped it to weather tough economic conditions and maintain market competitiveness. The company emphasised its commitment to investment, adding: "Both the retail and trade paint markets in the º£½ÇÊÓƵ remain highly challenging trading environments."
It noted that in 2023, the decorative paint market had stabilised with a slight decrease of around one per cent.
Despite robust demand in the trade sector due to ongoing new build home projects, the retail side continues to lag, impacted by reduced DIY consumer demand amidst high inflation, the cost-of-living crisis, and low consumer confidence, it added.
Nigel Emmanuel, commercial director at Crown Paints, said: "We’re laser-focused on investing in our business and our colleagues, retaining the trust of our customers and leading the charge when it comes to sustainability.
"Despite a challenging market environment, with these key priorities we are well placed to navigate the opportunities and challenges ahead of us in 2025.
"Looking ahead, we’re going to continue to put our communities, people and the environment at the forefront of everything we do.
"We’re excited to see what 2025 brings and to working with all our stakeholders to make a success of it."
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