Profits declined at a furniture manufacturer despite bosses saying the Brexit vote has given them an advantage against imported products.

Crown Imperial, which marked its 70th anniversary last year, suffered a 36% decline in pre-tax profits on continuing operations to £1.6 million, according to its latest accounts.

Like-for-like turnover remained flat at £56.4 million at the third-generation kitchen and furniture business, which is based in Eddington Business Park in Herne Bay.

In his company report, director Barry Head said “national and international factors” could impact consumer confidence in the UK.

However, he said the reduction in the value of the pound since the EU referendum “should place the group’s furniture offering at an advantage to imported furniture products” although it will also affect the cost of replacement equipment.

He added: “It is likely that future years will be less predictable than the recent past and the directors aim to use the group’s strong financial position to maximum effect.”

The company, which employs about 250 people, improved its gross profit percentage to 26.43% from 23.73% a year earlier.

Mr Head said the directors were “pleased to report positive results once again” and that the company is continuing to invest in the business.

He said: “Our distribution operations have seen complete refurbishment of their office environments and we have developed some major product enhancements for launch at our midsummer showcase.”