Croydon-based distributor IFSE has topped £10m in turnover for the first time in its history.
In its latest financial figures, publicly available from Companies House, the firm garnered £10.6m in the 12 months to 31 March 2019, a 13.4% revenue increase from the previous financial year.
Gross profit was also up 6.1%, from £3.0m to £3.2m.
However, operating profit did drop slightly, down 13% from 2017-18’s circa £800k to the £695k for the latest financial year.
The directors stated in the report: “The company has continued to target being the best commercial catering design and build company in the UK catering fit-out market. Impending Brexit reduced confidence in the market during the trading year and meant that there were fewer projects with more companies chasing them. This has brought margins under pressure which has mostly been compensated by increased turnover.
“We concentrated on those markets where there has been continued optimism and investment. This strategy has been successful. The company has invested in a new sales employee which is bearing results from the second quarter of the year.”
While group MD Andrew Fordyce revealed to Catering Insight that for the current financial year: “The 2019/20 trading year was affected by reduced confidence in the economy for our business and industry clients, caused by the political climate. Thankfully this did not affect other key sectors covering public attractions and venues, religious organisations, private schools and the garden centre sector.
“We had plenty of notable design and build projects in the year ranging from four public restaurants at the NEC, a complete restaurant fit out for a major Formula 1 racing team and a major re-design of a garden centre we first fitted out 6 years ago.”
He further analysed: “In this challenging environment we are growing turnover by 13.2% to £11.3m and increasing gross profit by 7.6%, helped by a strong performance in our service and maintenance company Romann Catering.
“We increased the cost base in the company by strengthening our marketing department and hiring some young talent to train up on design and project sales for the future.”