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Lincat growth slows as profits climb

11889-Lincat UK building
Lincat’s 2018 results indicate the stable health of the manufacturer.

UK-based catering equipment manufacturer Lincat has posted a stable set of financial results for the year ending 29 December 2018.

According to the Middleby Group company’s annual report, now publicly available on Companies House, revenue plateaued at £44.5m as compared to 2017’s £44.3m.

With 2017’s turnover surging by 13.5% as compared to 2016, 2018’s comparable growth rate has slowed significantly, being just 0.5%.

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£38.9m of Lincat’s 2018 turnover was generated in the UK, representing 87% of the total, which maintains the proportion from the previous year.

There was positive news relating to profits, with operating profit rising by 12% from £11.0m to £12.4m.

Gross profit on sales was £22.4m at a margin of 50.2%, 1.3% up on 2017’s 48.1%.

Just one employee was added to the overall staff count, which in 2018 came in at 250, though production, engineering and technical personnel numbers increased slightly as against sales and administration posts.

Finance director Jonathan Dove stated in the report: “The company invests a significant amount in research and development and faces risks associated with a need to constantly refresh and innovate their commercial offering should a product fail commercially.”

He further analysed: “The company’s market is largely reliant on the strength of the economy and therefore faces the risk of uncertain future demand for products.

“The company is constantly subject to pressure on prices from both UK and overseas competitors and there is a risk that insufficient cost control or investment in product could significantly erode margins.

“As a manufacturer the company is subject to the current significant fluctuations in commodity prices with a limited ability to pass increases onto customers.”

Dove forecasted: “As for each year the company has an ambitious target for growth in EBITDA for 2019. The directors are confident of achieving the growth required to meet its target, with several new products to be launched in 2019.”

Tags : businessfinancial resultsfinancialsLincatmanufacturer
Clare Nicholls

The author Clare Nicholls

5 Comments

  1. I must admit despite being popular products we have purchased less Lincat this year as Nisbets prices are close to our buying prices and sometimes better. .

  2. Lincat are consistently the worst margin products we sell most of the time we make virtually no margin despite being a long term distributor

  3. It’s nice to see a UK company performing well and looking after margins, that sounds like good business sense to me.

  4. Under the strong leadership of Chris Jones we will only grow and maximize our profits.
    Well done to Christopher and the wonderful team

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