close

Alliance overhauls business model to keep it on financial track

Alliance-Online-Image-2 crop
Alliance has focused efforts on costs and margins to maintain healthy profits.

Crewe-based online catering equipment dealer Alliance Disposables has reported mixed fortunes in its latest annual report for the year ended 30 September 2018.

The financial results, publicly available from Companies House, detailed a slight turnover fall to £114.6m, 2.4% down from the firm’s highest ever turnover in the 12 months prior, of £117.4m.

However, its margins performed as budgeted at 28.3%, 1.5% up on last year’s 26.8%.

Story continues below
Advertisement

Director Paul Bonson reviewed: “Following a year of assessing our national account platforms, the directors are pleased with the re-shaped business model and the balance between national and regional trading.

“We ended a long-term agreement with our largest contract and since then we have enjoyed significant account gains and an over-performing regional platform.”

Operating profit slid nearly 7% to £6.4m from 2017’s 6.8m.

Bonson further analysed: “Focused efforts on costs and margins have ensured that profits have remained at a planned and healthy level during this transition.

“Confident of the underlying growth prospects for the company, the directors continue to invest in the systems and infrastructure of the business to deliver growth.”

The company is maintaining a strong balance sheet, as at 30 September 2018 it had no external debt.

Bonson predicted: “We are forecasting further top line growth in the current financial period and focus on margin management to protect the profitability of the business. Year to date results are ahead of forecast.”

In 2018 Alliance opened a European base in Ireland, with a focus on servicing customers in both Northern Ireland and the Irish Republic. The dealer is also utilising this as a platform for trading and currency management into Europe.

It has increased its offering to over 20,000 products and continues to support a branded strategy.

Alliance is a major supplier of non-food catering equipment and catering disposables in the UK. The company provides UK-wide coverage from a network of 11 regional depots.

Tags : alliancedealerdistributorfinancial resultsfinancialsonline dealer
Clare Nicholls

The author Clare Nicholls

Leave a Response

Protected with IP Blacklist CloudIP Blacklist Cloud