Supply chain problems will last into next year, says furniture seller Made

The boss of furniture company Made expects issues in global supply chains to continue into 2022.

Philippe Chainieux said that the company, which listed on the London Stock Exchange earlier this year, is still seeing strong demand.

But like other furniture companies it is facing troubles with getting enough supplies.

“Thanks to our agile business model and supplier relationships, we are well positioned to navigate the industry-wide global supply chain disruption, which is expected to continue into the first half of next year,” Mr Chainieux said.

The company said it expects the issues will continue to result in longer shipping times, pressures on what products it has available, and increased shipping costs.

Made starts to market its products to customers long before they reach its warehouses. Shoppers can place orders when products are being manufactured and shipped.

Normally this is up to 12 weeks before the company can deliver to its customers. But recent disruption has pushed this to up to 18 weeks, Made said.

It has sold products on these extended times for much of 2020 and 2021, Made said, which impacts customer conversion and sales growth.

Yet sales are still healthy. In the six months to the end of June sales grew 54% compared to the same period a year earlier.

Pre-tax loss shrank by a third to £10.1 million on revenue of £171 million, up 61%.

Mr Chainieux said: “I am very pleased with the progress made in the first half of the year, which is in line with the long-term goals set out at our IPO (initial public offering) in June.

“We have continued to see strong and sustained consumer demand for our exclusive, design-led products and have gained significant market share with growth in all eight of our markets.”

He added: “We have multiple levers to drive superior growth and will continue to strengthen our model through the ongoing implementation of our strategy: to invest in our unique customer proposition through further developing our curated, design-led range, enhancing customer experience, investing in our brand and expanding internationally.

“I am confident in the outlook for the full year and in Made’s long-term growth.”

Meanwhile, Cabinet Office minister Michael Gove was understood to have been tasked with co-chairing a taskforce to alleviate Britain’s food supply chain issues alongside Treasury minister Steve Barclay.

Prime Minister Boris Johnson joked he “didn’t want to have to cancel Christmas again” as he told his Cabinet of Mr Gove’s appointment to the National Economic Recovery Taskforce (Logistics), according to The Times.