AFE Group posts flatlining profit

AFE Group CEO Tim Smith remains optimistic about the company's future.

Ali Group manufacturing company, AFE Group, reported a slight reduction in profits for its financial year to 31 August 2016, compared to the 2015 figures.

The firm, which owns the Williams Refrigeration, Falcon Foodservice Equipment, Mono Equipment, Serviceline and Millers Vanguard brands, detailed in its annual accounts filed at Companies House that 2016’s profit was £15.044m, only slightly less than the £15.072m from 2015.

Turnover also dropped from £119.1m to £118.3m. The revenue decline of 0.7% was cited as due to a reduced spend from retail clients in the reporting period.

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Furthermore, export sales decreased by 17.7% to £7.4m, as the group reported that previous revenue levels reflected sizeable bakery equipment projects that did not reoccur in 2016.

Nevertheless the King’s Lynn-based group recorded an increased operating profit before goodwill amortisation of 15.4% for 2016, slightly up on its 15.3% 2015 figure.

AFE’s CEO Tim Smith stated in the report: “Despite some difficult market conditions our various initiatives to enhance the company’s potential are progressing well.

“In a changing marketplace we are adapting our products and business model to be in a position to make the most of new opportunities. We have committed substantial resources and capital investment to seize market opportunities and improve our operational performance as well as enhancing our competitiveness. We have also heavily invested to modernise our IT infrastructure.”

He added: “We remain optimistic towards future sales growth; however activity levels within a number of key market sectors is seen as changeable in the year ahead as major clients undertake strategic reviews of their business models, particularly in light of the Brexit referendum and uncertainties that arise in the economic and currency markets. Our focus remains resolutely on delivering new products and unparalleled support to our customers.”

Tags : afe groupAli Groupannual reportFalconfinancesmillers vanguardMono EquipmentservicelineWilliams Refrigeration
Clare Nicholls

The author Clare Nicholls

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