Meiko UK has reported its company financial results for the year ended 31 December 2019, detailing a broadly positive 12 months.
The annual report, publicly available from Companies House, shows that the firm’s revenue increased by 2%, from £19.1m to £19.4m, while operating profit rose by a massive 1,082% from £70k to £823k.
The firm’s financial director, Peter Barry, analysed within the report: “The company had a reasonable year given the economic climate. Sterling remained volatile against the Euro for the year but a late Sterling weakness in December resulted in a foreign exchange dip in position. The increase in sales was in part attributable to a growth in small machine sales.”
Identifying the coronavirus impact as a significant strategic and commercial risk, Barry continued to write: “The flight to safe haven currencies such as the US Dollar and Euro has seen Sterling fall dramatically in value against these currencies. The resulting devaluation of the Pound has increased pressure on the company’s margins as the majority of the commercial warewashing equipment is purchased in Euros from Germany.
Barry further detailed within the report that Meiko expects the impact of hospitality sites’ forced closure due to Covid-19 will last 4 months. “While a drop in machine sales over the next 4 months will occur it is expected that this will be recovered as the economy slowly picks up again.
“Of more significance is the loss of service work for the 4 months. To mitigate this impact the company will be taking advantage of the government job retention scheme to considerably lessen the salary burden of the company of staff who have no work.”