National distributor ScoMac has seen its profit grow in 2016, despite some challenging market conditions meaning turnover fell.
According to the latest publicly available accounts from Companies House, profit after tax for the year ending 31 December 2016 was recorded as £453,856. This represents over 25% growth on 2015’s figure of £337,708.
However, turnover shrank by about 7% from 2015’s £14.3m to £13.3m. The 2015 total did represent a 5% increase from the previous year in itself though.
Director Nick Imlah stated within the financial report: “Trading conditions were difficult but margins slowed slight increases compared with the previous year. The company was in a sound financial state at year end.
“The directors will endeavour to maintain the company’s performance level by responding to changes in the market and actively looking for new business opportunities.”
He further detailed that the principal risks and uncertainties ScoMac is facing are the cost of raw materials, pressure on prices from competitors and the state of the economy. “There is a need for the company to refresh and innovate so that its products appeal to the current market, otherwise there is a risk that sales and profitability could decline,” said Imlah.
“The company is exposed to a variety of financial risks at varying degrees, including the effects of changes in interest rates, foreign exchange rates, liquidity and credit risk relating to trade debtors and creditors.”
ScoMac will now be managed by Nick Imlah, group MD of parent company, Unitech Industries, director Steve Shepherd and group financial director Mark Street following outgoing MD Iain Munro’s departure to head up Hobart Cooking Solutions.