Catering equipment manufacturer Lincat has painted a positive picture of its financial standing in its latest annual report, now publicly available from Companies House.
The document covers the 12 months to 28 December 2019, but the directors also reviewed the Middleby Group company’s 2020 fortunes.
With regards to the Covid-19 impact on Lincat, finance director Jonathan Dove wrote: “The short to medium term effects of the pandemic on the sector and the wider economy remain uncertain. The company has responded with robust measures to minimise the impact on the business.
“These measures have included scaling back production, furloughing employees under the UK government support scheme, cutting back non-essential expenditure and carefully managing working capital.”
He further detailed: “In addition, new handwash and sanitising product ranges have been developed and launched which are helping to maintain turnover. The company has remained profitable throughout the pandemic and has maintained a safe level of cash.
“The directors believe that the company has sufficient cash reserves and the resilience to survive the continuing effects of the pandemic, even if conditions were to worsen again.”
For the firm’s 2019 financial year, it generated £45.9m in turnover 3% up on 2018’s £44.5m. Gross profit on sales was £22.7m, at a margin of 49.4%, slightly decreased from the previous year’s 50.2%. Operating profit increased by 1% from £12.4m to £12.5m.
Dove also revealed how Lincat has prepared for Brexit, adding: “The company is exposed to risks associated with the exit of the UK from the EU. Measures have been taken to mitigate these risks.
“Stock levels of key components sourced from the EU have been increased and arrangements have been made to accommodate the change in status of movement of goods from the EU to the UK.”