Source B: Pukka Pads
Pukka Pads is a stationery business based in Poole, Dorset, owned and controlled by Chris Stott. It sells notebooks, pads, files, packaging and party products to retailers, to other businesses and online. It makes products in its UK factories and buys others from suppliers in China and the Far East, paying them in US dollars. It has companies in the United States, Hong Kong, China and the Netherlands.
In the year to 30 September 2025:
turnover fell by 10% to £21.8 million, "primarily as a result of moving away from very low margin product sales in the UK business"
gross profit rose, and operating profit rose to £652 055
inventory was reduced by £1.57 million
the average number of employees fell from 84 to 71
The company faces two main pressures:
Currency. No contracts to fix the exchange rate were in place at 30 September 2025, though some were taken out shortly afterwards. Administrative expenses included an exchange loss of £68 483 in 2025, against an exchange gain of £413 141 in 2024.
Trade. Since April 2025 the United States has charged a tariff of 10% on most goods imported from the UK, and higher tariffs on many goods from China.
For 2026, Pukka Pads says that "new machines have been acquired to improve manufacturing processes, reduce waste and headcount". In 2024-25, £367 080 of new machinery was financed through hire purchase. It also says that leaving one of its UK warehouses by 30 June 2026 will save more than £700 000 a year.
Source: Pukka Pads UK Limited, group accounts for the year ended 30 September 2025
Pukka Pads buys many of its products from suppliers in China and the Far East, paying them in US dollars.
Analyse one way in which a fall in the value of the pound against the US dollar might affect Pukka Pads.
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