Bedmaker Hypnos, part of Keen and Toms Holdings, says it delivered "a solid performance" in its latest financial year (to 24th June 2022).
The manufacturer says success was driven by two key themes – innovation and partnership - in a trading period which saw it enjoy growth in turnover of just above +17%. In addition, the company made a number of efficiency improvements across the business, reducing administration costs by -3% in 2021-22 compared to the previous year, and cutting distribution costs by -1% during the same period – despite a challenging first six months, with the second half of the year proving much stronger for the business.
Rises in raw material prices and energy costs were keenly felt, but efficiencies within the business meant that price increases to customers were kept to a minimum, says Hypnos.
The aftermath of the pandemic impacted staffing levels due to a shortage of skilled workers and craftsmen, but a proactive approach to recruitment and retention saw staff numbers return to the required levels by December – which proved critical in continuing to meet record demand for Hypnos products.
Innovation was also a constant theme throughout this period, with several key product introductions, including Hypnos’ Origins Organic Collection, certified by the Soil Association and endorsed by the Eden Project. Hypnos also produced the Hospitality Origins Collection, with products manufactured from natural and sustainable materials, including Red Tractor wool from assured British farms.
Hypnos says it also focused on delivering social value, with employees giving up their time to support local disadvantaged families, as well as those with bed or furniture poverty and the homeless, and the business provided support to Ukrainian refugees by donating mattresses to those who needed them.
The year also saw Hypnos embark on Project Zero, a mission to develop carbon-negative mattresses, which is integral to the company’s pledge to go beyond neutralising its carbon footprint and actively help to regenerate the planet by manufacturing mattresses which remove CO2 from the atmosphere.
Hypnos CEO James Keen (pictured) says: “Like many companies, trading conditions in 2021-22 presented a unique set of challenges, but as a resilient business, we were well placed to overcome these and create new opportunities.
“We remain confident that supply chain issues have subsided to manageable levels and that we are driving towards our ambitious growth objectives. As part of this, we continue to invest in all areas of our business, delivering the levels of innovation which our discerning customers require. This ensures we’re creating the highest levels of comfort, quality, durability, and design, all without compromising on sustainability.
“It goes without saying that sustainability remains at the heart of everything we do, and new partnerships with the Eden Project, and our work with partners such as Red Tractor and Soil Association, mean customers can be assured that by choosing Hypnos, they will be doing the right thing when it comes to protecting the wider world.
“This strategy, and the force for good actions we take within it, continues to position Hypnos ideally to deliver on our promise of ‘comfort with integrity’.
“In summary, having recovered from the pandemic challenges from early 2022, the business is now focused on developing its platform for a successful future through its 120th anniversary in 2024.”
The year culminated in a new partnership with Waitrose farms, from which Hypnos now sources wool direct for all its John Lewis bed collections. Hypnos also collaborated with John Lewis to develop its own-brand Classic Eco Collection 1200 Pocket Spring mattress, which was awarded the Best Wool-Free Mattress Award in PETA’s 2022 Vegan Homeware Awards.
Other wins included Component Product of the Year for the Himalaya Nettle, Cotton, and Kapok Fibre Comfort Layer at the National Bed Federation’s 2022 Bed Industry Awards.