Warewasher manufacturer Meiko UK has stormed through 2018 despite exchange rate fluctuations generated by the Brexit process.
According to the firm’s latest financial results, now publicly available on Companies House, it garnered £19.0m in revenue for the 12 months to 31 December 2018, 4% up on 2017’s £18.3m.
Operating profit had a massive swing back into the black, after 2017 saw figures dip to a £0.7m loss. However, 2018 turned this around with a £70,000 profit, representing a 110% uplift.
Finance director Peter Barry stated in the report: “Some of the most significant strategic/commercial risks facing the company continue to be the impact of the UK leaving the EU. The resulting devaluation of the Pound from 1.13 in 2017 to 1.10 in 2018 has increased pressure of the company’s margins as the majority of the commercial warewashing equipment is purchased in Euros from Germany.
“Our main competitors are also facing the same exchange rate issue so that a general price increase in 2019 has been necessary.
“The company addresses this risk to a limited extent by use of hedging instruments and have a number of hedging instruments in place at the year end. Product quality and customer service are also core to reducing the impact of these risks.”
He concluded: “The weaker Pound continues to impact on the margins on sale of machines during the year as any movement cannot be reflected in the selling price which is set at the beginning of the year. The directors attempt to minimise any adverse effect by the timing of payments using judgement when the rates are most favourable.”