The Cotswold Company has posted record annual sales and a near 25 per cent rise in profit, despite a tougher backdrop for the wider furniture and homewares market.

The premium furniture company saw sales climb 23 per cent to £123million in the year to 28 February, while profit before tax rose to £9.6million, up from £7.8million the previous year.

The strong performance comes as the wider UK furniture and homewares sector continues to cool following the surge in demand seen during the pandemic.

The Cotswold Company said growth had been driven by strong demand for its premium bedroom ranges, alongside the launch of new collections with a more “modern aesthetic” designed to appeal to a broader customer base.

Active customers rose 19 per cent over the year, while the retailer said sales had “materially outperformed” the wider furniture market.

Its upholstery arm also delivered 60 per cent growth, with shoppers increasingly looking to personalise furniture around comfort, style and longevity.

Chief executive Ralph Tucker said customers were becoming more considered in their purchasing habits, which had strengthened the relevance of the retailer’s “high-quality, made-to-last” proposition.

“Combining this shift with the strength of our brand and the completion of several strategic initiatives, we have continued our strong momentum with another period of record growth in which we’ve significantly outperformed the broader homeware and furniture market,” he said.

The Cotswold Company opened three new showrooms during the year, in Harpenden, Knutsford and Chichester.

It has since opened two further sites in Kingston and at Redbrick Mill, with all new locations performing ahead of expectations.

The retailer also pointed to investment in artificial intelligence, including work to improve its visibility on large language models and the introduction of a new “searchandising” tool to help shoppers discover products more easily.

Founded in Bourton-on-the-Water, Gloucestershire, in 1996, The Cotswold Company specialises in handcrafted wood furniture, upholstery and home accessories.

The business sits at the premium end of the market, with some of its made-to-order sofas priced at more than £5,000.

Its latest results follow reports last autumn that private equity owner True Capital, which acquired a majority stake in the company in 2016, had begun early preparations for a possible sale of the business over the next couple of years.

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