TEXTILES company Caldeira expects to post profits of £1m on a turnover of £22m in 2009, thanks largely to the acquisition of 14 Fabric Warehouse retail stores.

However, annual accounts for 2008, which exclude the takeover business, show that sales of cushions and other fabrics remained stable at £6.3m, compared with the previous figure of £9.2m, which covered an 18-month trading period. Taxable profits were £844,179 during the period, down from £1.57m.

During the year the Knowsley-based company, which also has a joint venture in China, consolidated its position as the UK’s market leader in the supply of cushions, throws and associated products to volume retailers.

Founder Tony Caldeira said: “Sales have remained broadly stable despite very challenging market conditions in the second half of the year. The impact of these market conditions, together with unfavourable exchange rate movements, has led to a downward pressure on margins.

“Overhead costs have continued to be tightly controlled, and the company has benefited from synergy savings stemming from the acquisition of the retail business. The acquisition represents an opportunity for growth together with synergistic benefits that will arise from integrating the retail business with that of the company and its Chinese operation.

“The new retail business has performed encouragingly during its first eight months of trading, against a backdrop of a very challenging economic environment, and during a period which the directors consider to be a turnaround phase of the business’s evolution. The directors are confident that the company will continue to strongly out-perform its peers and will continue to invest in its product development, staff and systems.”

The acquisition means the number of staff employed has risen from 57 to 400.

The two directors of the company received £79,000 in pay and dividends.

BARRY TURNBULL