Cimbali UK’s recently-published annual report for the year ended 31 December 2018 makes for positive reading.
The coffee machine supplier added 35% to its turnover, growing from 2017’s 13.3m to last year’s £18.0m. The report pinpointed the growth as being due to taking on significant new customer contracts during the year.
Operating profit too has bounced back from a loss of £364k in 2017 to a profit of £513k, a massive 241% differential.
However, the company experienced a decrease in the gross profit margin from 24.9% in 2017 to 2018’s 23.1%.
Director, Daniel Clarke analysed in the report: “The principle factors giving rise to the lower gross profit in 2018 are that we changed our product mix, with an increased weighting towards products which attract lower profit margins.
“While the directors continue to maintain a policy of cost control, the company has invested in its people, showrooms and facilities and continued with its long-term strategy to promote the brand and products as well as ultimately seek to enhance the customer experience.”
Stock held at 31 December 2018 amounted to £4.2m, compared to £4.0m in the previous 12 months. This level was reportedly as anticipated by the directors.
Clarke forecasted: “The directors view the future positively and see their priority for 2019 to be to maintain and further develop a strong position in Cimbali UK’s chosen markets via continued development and investments in product and service.”