The Timbmet Group has reported a third year of stabilising revenues and improving both their gross and net profitability. Timbmet has continued to build on its strengths and invested into its core business.
Simon Fineman, chairman, said: “The Group is pleased to report an operating profit of £378,000 compared with £328,000 last year. The board are confident that, despite subdued trading as a result of Brexit, Timbmet is well postioned to grow and to trade profitably in the current financial year.”
UK managing director, Nigel Cox, added: “The underlying sales trend for the UK business was positive, showing an increase of 4.3%. We have continued to win new customers throughout the year due to our excellent service proposition and wide product base. However, as a result of continuing market pressures, the gross profit percentage fell slightly from 23.8% to 23.5%.
“We have continued to invest in our stock ranges and in our warehouse and distribution infrastructure. We have added to the number of front line operational and sales staff, giving our customers the advice and support that they demand.”
Chief executive, Paul Rivers, concluded: “We continue to see the benefits from the Group’s return to stability and profitability in recent years. During the year we acquired the freehold of our main warehouse facility at Shellingford from our parent company. And, just after the year end, we renegotiated new bank facilities with Lloyds Bank which gives us the certainty and flexibility we need to continue to invest in and grow our business.”
Timbmet has also closed the funding gap on its closed final salary pension scheme. The annual valuation exercise for the scheme resulted in a reduction of the net deficit of £2.2m. This helped increase shareholders funds by £2.5m for the year.