ScoMac Catering Equipment is steering through some choppy headwinds in the market, according to its latest annual report, publicly available on Companies House.
For the year ending 31 December 2018 the distributor recorded an £11.7m turnover, 11% less than the 2017 financial year’s total of £13.2m.
Operating profit fell by an even higher proportion of 62%, from 2017’s £663k to £249k in 2018.
Gross profit margin was also down by a couple of percentage points, from 30 to 28%.
Nick Imlah, CEO of ScoMac’s parent company Unitech Group stated in the report: “Trading conditions were difficult, which is shown through decreases in turnover and margins compared with the previous year. But the company was in a sound financial state at the year end.
“We face the same risks and uncertainties as our competitors of similar size and complexity. The directors will endeavour to maintain the company’s performance level by responding to changes in the market and actively looking for new business opportunities.”
He further analysed: “The company has a limited ability to pass onto customers current significant increases in raw materials commodity prices. We are constantly subject to pressure on prices from our competitors, and without cost control and investment in new products, there is a risk that profitability could be reduced.”
Looking ahead, Imlah detailed: “There is a need for the company to refresh and innovate so that its products appeal to the current market, otherwise there is a risk that sales and profitability could decline.
“The directors are optimistic that the investment in development of new products will create greater marketing opportunities and increased sales.”