The Timbmet Group has had a second consecutive year of improving both their gross and net profitability and stabilising revenues.
Chairman, Simon Fineman, said, “The Group is pleased to report an operating profit before exceptional costs of £2.126 million, compared with £1.782 million last year. Given the actions taken by the group in recent years and the future plans, both supported by an easing of economic pressures, the board are confident that the business will continue to grow and to trade profitably in the current financial year.”
The decisive action in the first half of 2013 to restructure the management team and certain operational elements of the business has been reflected in the results for the last two years.
UK Managing Director, Nigel Cox, added, “The underlying trend for the UK business was an increase of 7.1%, with our overseas business showing a strong growth of 31.1%. Overall, group sales fell by 1.0%, but this includes the discontinuation of low margin direct business to a major DIY chain. As a result, the gross profit percentage increased by 1.7 percentage points. Our intention now is to invest further by enhancing our stock range and increasing the number of front line sales staff so that customers get the advice and support that they need. Operationally we’re investing in our business infrastructure, expanding our warehouse capabilities and upgrading our fleet to enable us to effectively process the orders and, ultimately, deliver the product.”
Timbmet has also continued to review their closed final salary pension scheme. This year an additional non-cash exceptional cost of £1.0 million was recognised to correctly equalise retirement ages under the scheme. The 2014 triennial valuation of the scheme has been completed, and a new and longer deficit reduction payment plan will apply from July 2015. This will reduce the group’s contributions to the scheme for the next three years.