London-based distributor Court Catering Equipment has increased its net profits and gross profit margin, according to the latest publicly-available accounts from Companies House.
In the year ending 28 April 2017 the firm generated a net profit of £170,000, which is double 2016’s figure of £85,000. Employee numbers also grew from 28 to 31.
Furthermore, the gross profit margin rose by 2% year on year, from 8% to 10% in 2017.
The report stated: “The company intends to maintain this gross profit margin, while increasing sales year on year.”
While MD Nick Howe told Catering Insight: “We are pleased to report another year of profitable trading in an environment of financial uncertainty (i.e. Brexit and the likes of Carillion), where distributors’ margins are constantly under pressure and where clients’ and contractors’ performance expectations and payment proposals are often unrealistic.”
However, turnover did drop by 12% from 2016’s £9.2m to £8.1m. Howe explained: “Turnover expectation was in line with our projection, albeit down on 2016 which was our highest turnover in 40 years of trading. This was bolstered by Le Cordon Bleu Paris project which was an exceptional project for our company in size, complexity and success, winning the 2017 CEDA Grand Prix Overall award.
“Our team worked hard at improving margins as seen in our profit declared for the year. In our current 42nd year we should be improving on this even further.”