Revenue up but exchange rate eats into profits for Nevilles

Nevilles opened this London showroom in the 2017 accounting period.

Light equipment manufacturer Neville UK saw sales grow by 9% last year according to the latest publicly available accounts from Companies House.

The report for the 12 months to 31 December 2017 showed that turnover increased from nearly £18m in 2016 to in excess of £19.6m last year.

Geographically, revenue grew slightly for the UK, from £15.2 to £15.9m, with sales in the rest of Europe increasing from £2.7m to £3.5m and likewise in the rest of the world from £76,794 to £203,069.

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However, operating profit was down by 66% from £1.4m to 2017’s total of £457,229.

The directors stated in the report: “Nevilles has had a busy year with sales growth across our key customer sectors. Nevilles invested heavily in this sales growth, providing pricing continuity to its customers. This meant that profitability was reduced, with the exchange rate being the major reason behind this reduction.

“New product development continued at a rapid pace during 2017, with four new launches throughout the year, increasing the ranges offered to our customers.”

They analysed: “Extensive investment in our infrastructure happened in 2017 as we prepared for our expansion into our Nevilles Customer Fulfilment Centre, increasing our distribution space to 100,000ft2.

“We foresee continued growth for the next 12 months, again focusing on sales growth, product development, infrastructure development and improving the customer experience, to help us achieve our ambitious growth plans over the next 5 years.”

MD Andrew Neville told Catering Insight: “We saw excellent growth in 2017, with significant re-investment back into the business infrastructure to manage our growth plans over the next 10 years.”

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