BED and furniture giant Silentnight today reported record sales but a slight dip in profits.

The Salterforth-based firm, which employs more than 4,000, saw turnover increase by three per cent to £236 million, with pre-tax profits falling by one per cent to £16.3 million in the 12 months to January 30. Profits were hit by sales in cabinet furniture, which fell sharply in the second half of the year.

But the UK bed division, where most of the firm's East Lancashire employees work, produced record sales and record profits with turnover up by 10 per cent and profits by 16 per cent.

"Our UK bed division brings much stability to our group and is a solid base to our activities," said chief executive Bill Simpson. "I believe that as market leader we will continue to see the benefits from this." The firm is in talks over the sale of its spring business which includes Wellhouse Wire Products of Barnoldswick. If the deal goes ahead it will seek a long-term supply agreement with the Missouri-based firm, the world's largest manufacturer of bed springs, which supplies Silentnight and other customers.

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