Crown Paints: Losses double as more jobs lost amid DIY downturn
Crown Paints saw its pre-tax loss more than double as it shed further jobs despite sales rising, it has been revealed.
In delayed accounts, the Lancashire-headquartered firm has reported a pre-tax loss of £16.1m for 2023.
The figure comes after Crown Paints made a pre-tax loss of £8m in the prior 12 months.
However, the results also show its turnover increased over the same period from £202.8m to £214.1m.
The accounts were filed with Companies House on 27 December, after the deadline of 30 September.
The documents come after Crown Paints said in January 2024 that it expected its profit to bounce back after what it described as a “dismal performance” in 2022.
Crown Paints, which is owned by Danish paints manufacturer, Hempel Group, also saw its headcount reduce from 1,090 to 1,069 in 2023.
A statement signed off by the board said: “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.
“Market conditions remained tough because of continued high inflation, low customer confidence and the cost-of-living crisis.
“This demand for paint products stabilised after sharp decline in 2022.
“The tough decision to re-organise the business in 2022 helped to either challenging economic conditions and maintain its competitiveness in the market.”
Crown Paints ‘laser-focused on investing’
Crown Paints added: “Both the retail and trade paint markets in the UK remain highly challenging trading environments.
“In 2023, the decorative paint market stabilised and dropped by around one per cent.
“The trade sector demand remains robust because of sustained activity in [the] new build home market.
“The retail business performance is still trailing because of lower demand from DIY consumers due to high inflation, cost-of-living crisis and low consumer confidence.”
Nigel Emmanuel, commercial director at Crown Paints, added: “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.”