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%.
£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.
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.”