Rational UK has bounced back from the initial impact of Covid-19, posting a strong set of financial figures.
In the Bedfordshire based group’s latest annual report, which is now publicly available from Companies House, both turnover and profit climbed.
Turnover was 12% above 2020 levels, totalling almost £50m, up from £44m in 2020 – which according to the company, is a result of a strong recovery in the hospitality sector, particularly the coffee shop and pub industry.
Operating profit also rose to £3m, up from £940,000 the year before, resulting in a sales margin of 6.0% compared to 2.1% in 2020. Gross profit also increased by 2.2% in percentage terms.
When making a comparison with last year’s figures, it is worth noting that Rational no longer supplies products to the Republic of Ireland. As a result, the comparable sales figures in 2021 are approximately 8% lower.
According to the report, Rational has made a strong comeback following the crisis and is now busier than ever: “We started 2021 in near lockdown conditions facing a hospitality shutdown which affected 50% of our main customer base. By the end of 2021, we had a record order book and were faced with a challenge of fulfilling orders in excess of pre-pandemic levels.”
However, this increased customer demand has resulted in supply chain issues which, according to the report, Rational is working on to resolve.
“This is a similar picture for many producers of intelligent, high tech equipment. As a result, we carry an order backlog three times the normal levels. The focus from a group perspective will be to find alternative supply chain solutions so we return to our standard delivery levels by mid-2022.”
Directors at the company said the company is in a strong position to increase sales demand from all segments as the business returns to normal trading conditions.