The Timbmet Group has had a second consecutive year of improving both its gross and net profitability and stabilising revenues. To build on the secure business platform now in place, Timbmet is planning for further growth.
Simon Fineman, chairman, said: “The Group is pleased to report an operating profit before exceptional costs of £2.126m, compared with £1.782m 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 is 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 increased by 1.7%.
“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.”
Paul Rivers, chief executive, said: “It is very pleasing to see the efforts of the last two years reflected in the group’s return to stability and profitability. We are continuing to work on forward planning to continue increasing the rate of sales growth and profitability of the business. This will in turn allow for greater re-investment for the future.
“We want to be a business that customers want to trade with, because our service is better, our products are right and because our staff understand what the customer needs.”
Timbmet has also continued to review its closed final salary pension scheme. This year an additional non-cash exceptional cost of £1.0m 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.