Rotpunkt, award-winning designer and manufacturer of climate friendly German Kitchen furniture, is pleased to report a consistently healthy turnover of 100 million EUR in 2023, along with new geographical and commercial growth markets, and more value per kitchen for the retailer following the company’s latest finance report at year end…

Healthy annual turnover: As the KBB market continues to navigate the UK economy, significant environmental change, and associated manufacturing costs, Rotpunkt Küchen has achieved a healthy turnover of 100 million EUR for two consecutive years. Andreas Wagner and Heinz-Jürgen Meyer, Managing Partners at Rotpunkt Küchen explain, “In view of the extremely difficult market conditions that followed the enhanced demand of COVID-19, this is a very satisfactory result.” Sven Herden, Managing Director of Sales & Marketing agrees and adds, “Of course we would like to achieve more growth in turnover but, given the widely reported economic downturn and inflation, I feel these results are realistic for the beginning of the year.” In fact, the company’s turnover has steadily risen over the last 5-10 years, seeing an increase of over 35 million euros when compared to 2018 figures at 65 million EUR.

More value per kitchen: Helping to create a positive financial trend among its network of UK retailers, Rotpunkt is pleased to report that its range of furniture offers more value per kitchen and higher sales commission. Although this rise is not reflected in the volume of cabinets produced last year, retailers are reportedly selling more Rotpunkt furniture and enjoying greater margins and planning options that go beyond the kitchen space. Emphasising the company’s core philosophy where the home represents the ‘centre of life’ for many, Rotpunkt design and make furniture for the kitchen, utility, laundry room, and walk-in dressing room to furnish the entire home and allow customers to compare or contrast with the cabinetry, worktops, handles, and integrated lighting.

Modernisation vs. Employee gains: The continued rise in materials and energy prices continued to challenge the company’s business operations in 2023. However, Rotpunkt was able to limit these amplified costs with moderate price adjustments so it could maintain its standing as a strong multi-million-pound company with positive earnings and a continued path to modernisation. With continued investment in a new Warehousing & Logistics building, and also in machinery, logistics, its vehicle fleet, the digitalisation of production and business processes, as well as social issues for the Rotpunkt workforce. In December 2023, the company is proud to employ a broad mix of 364 men and women at each site in Bünde and Preußisch Oldendorf, and maintain its important reputation as an employer of choice in the region.

Growth in France: Generating the majority of sales from countries in western Europe, Rotpunkt is pleased to report its export ratio remains at 80%. The Dutch market continues to be a strong supplier of Rotpunkt furniture with sales generating the same results as last year, and the same applies to the Scandinavian market, which is heavily supporting the brand within the contracts market. Interestingly, France emerges as the biggest growth area for Rotpunkt, demonstrating extremely high growth, and this is bolstered by new developments in Austria and Switzerland.

Commitment to the British Isles: From Great Britain to the Channel Islands, business across the British Isles has been faced with particularly high inflation rates, when compared to the rest of Europe and these increases have slowed the level of growth in the UK. In response, Rotpunkt will invest in its sales and development team to promote a greater level of engagement from new and existing customers in the British Isles. Given that the UK is regarded as one of the largest markets in Europe, it seems only logical to accelerate investment across these sales territories. For instance, in January 2024 Rotpunkt UK appointed John McWhinnie, an experienced sales representative to oversee customers in the north of the British Isles and create new sales opportunities across northern England and Scotland.

Trade show benefits: Part of the Küchenmeile, Hausmesse, the in-house exhibition held annually in September is the most important event of the year for Rotpunkt, and the company will continue to do its part to further strengthen global relations for both brand and industry following each Küchenmeile. Additionally, other trade shows across Europe such as kbb Birmingham (March 2024), Esprit Meubles in Paris (November 2024) and Kitchen Living Trends in Salzburg (May 2025) will allow Rotpunkt to present its products in a country-specific manner and be supported by local sales teams to create new contacts and strengthen ongoing partnerships.

2024 outlook: Collectively, the senior management team says, “The market is tough right now and in the short term, forecasts show this financial year won’t get any easier. However, we can still offer a positive outlook as 2024 has just begun and currently, there is a good build-up of orders, so we are confident over the coming months.” Sven Herden adds, “At the moment, it is important to maintain Rotpunkt’s good economic position, strengthen existing partnerships and take a closer look at choice suppliers and new business connections. However, risk assessments of this kind are not exclusive to Rotpunkt, and retailers are also looking closely at who they can rely on.”

Kitchen, bedroom and bathroom retailers risk being hit by wave of employment tribunals following Uber ruling, warns trade institute.

Some of the biggest names in retail as well as a host of independent showrooms are at risk of falling foul of the precedent
for employment rights that has been set by the Supreme Court’s landmark ruling on Uber drivers’ status, according to
The British Institute of Kitchen, Bedroom and Bathroom Installation (BiKBBI).

In a briefing paper (https://www.bikbbi.org.uk/wp-content/uploads/2021/03/BiKBBI-Briefing-Paper-
Uber-Ruling.pdf) BiKBBI, which represents thousands of tradespeople and retailers in the home improvement industry,
warns that the model of subcontracting installers to fit new kitchens, bedrooms and bathrooms will now be open to
scrutiny. It calls on retailers to audit their relationships with installers and, if necessary, adapt their working practices to
avoid being vulnerable to employment tribunals.

BiKBBI’s briefing paper, which is issued to members and partners across the home improvement industry, highlights
how the Uber ruling means that the “totality of the relationship between businesses and subcontractors” will be looked
at in determining employment status, following the ruling, rather than just the specific contractual terms. It warns that
“if businesses are recognised as having an undue level of control over how the subcontractor goes about their work and
allows no room for negotiation over what they are paid, they are likely to be classified as employers and carry all of the
obligations that go along with it.”

The warning is intended as a wakeup call to home improvement retailers that rely on subcontracted installers to offer a
turnkey service to consumers. It is estimated that around 40% of skilled installers work with major and independent
retailers in this way and could now be in a position to demand rights such as sick pay, paid holiday and pension
contributions.

Damian Walters, Chief Executive of BiKBBI, said: “The Uber ruling is a potential game changer for the home improvement
industry and many retailers will need to quickly adapt how they work with their installers before being forced to do so
in ways that may hurt their businesses.”

BiKBBI recommends that home improvement retailers that rely on subcontracted installers audit the terms of their
commercial relationships against the employment criteria established by the Uber ruling. Where it is clear that
commercial relationships with subcontracted installers do fit the criteria established by the Supreme Court for employee
status, retailers should decide whether to:
• Formally agree terms of employment with installers so that they are fulfilling all necessary obligations;
• Adapt their working model and relationship with installers so that they do not meet the criteria for employment
status that has been established by the Supreme Court’s Uber ruling;
• Consider use of third party platforms, such as Protect My Install or other credible intermediaries, and a hybrid,
demonstrating they no longer hold direct relationships with subcontracted installers. As an example, this could
mean the sale and subcontracting of dry fit installation, utilising the third party platform to transact the
supplementary work.

Damian Walters, added: “Subcontracting works for retailers who are able to call on a flexible, skilled workforce, and for
installers who value the independence of self employment longside the certainty of regular work. However, the debate
about ‘gig economy’ working will inevitably reach our industry soon. It’s absolutely vital to get in front of this by adopting
innovative new working models that ensure installers are treated fairly and retailers can most effectively serve their
customers.”