Even though Newport-based Shine Catering Systems hasn’t officially published its 2019 financial year results, it’s not for the want of trying. As the coronavirus crisis delayed auditors in verifying the annual report for the 12 months to 31 December 2019, Shine kindly sent Catering Insight the unaudited figures to ensure that this year’s Power Players top 10 was as up to date and accurate as possible.
These exclusive details showed that the Welsh kitchen design house generated a record £15.1m in revenue, a 20% increase on 2018’s results. This sent Shine up a place in the 2020 rankings compared to last year, to our number 6. Operating profit was virtually maintained however, with a 2% slide from 2018’s £328k to 2019’s £323k.
The distributor’s MD Julian Shine believes the secret to its success is: “A great team who buy in to the ideology of the company. Although important, there is so much more to a business than bottom line.”
When it comes to managing the current unprecedented market challenges, Shine commented: “We try to be as dynamic as possible, breaking down our strategic planning to individual investment or disinvestment cases that can be plugged in to many different market scenarios, providing a rapidly changing business model. It’s like renewing the budget once a month providing rapid and clearly justifiable actions.”
This ‘playbook’ strategy has borne fruit, with Shine revealing: “We were probably previously fixated on the grand showpiece of a fixed annual budget, and then looking at the operational delivery diligently, monitoring attainment against budgeted figures. We then looked at corrective measures to take when we weren’t actually hitting those budgets.
“What this playbook model has given us is a much more dynamic strategy planning tool. We are able to much more rapidly change now our economic model to the changing economic circumstances. Our model is being changed on almost a weekly basis at the moment regarding the pressures that we’re seeing.”
While the firm still had to furlough some employees, subsequently the remaining team continued to provide the service for its customer base including the completion of many ongoing schemes. Five London projects were handed over to the distributor’s clients in difficult circumstances.
In terms of how Shine feels the company stacks up against its competitors, he responded: “I have no idea how our competition are doing, only that we have been able to provide business continuity to our clients throughout this period as we were already largely operating in the cloud, and are fully funded to see out this hiatus in productivity.”
However, he is more than aware that 2020’s finances will be hugely impacted, quipping: “I think we will focus on 2019 and 2021!”
When questioned on key guidance that he would give to the UK catering equipment supply chain at this time, Shine Catering Systems MD Julian Shine urged: “Be agile and decisive, but continually re-evaluate your decisions in relation to the volatility of the market.”