Distributor, ScoMac Catering Equipment, and its parent company, Unitech Industries, feel they have a solid foundation to manage the financial downturn in the wake of the financial crisis.
The organisations stated this position in their annual reports, recently published on Companies House.
In the 12 months to 31 December 2019, ScoMac generated £13.6m in revenue, 16.5% up on 2018’s £11.7m.
Operating profit increased at an even faster rate of 68%, from £249k to £419k.
However, gross profit margin slipped slightly from 28% in 2018 to 26% last year, in tough trading conditions.
ScoMac employed 96 staff in 2019, a reduction of two from the previous year, with 72 in the production team, down from 74 in 2018, and maintaining 24 in administration.
For the overall Unitech group, turnover rose by 12.9% last year to £54.1m from £47.9m. However, operating profit decreased dramatically, by 87%, from £1.2m to £154k.
The business has continued to invest in the group, with £800k of additions to tangible fixed assets.
Looking at the profit for the financial year in some of Unitech’s subsidiaries, fabricator Stellex Manufacturing made a £174k loss in 2019, slipping 41% from £124k in the previous year. Elsewhere, Banbury-based manufacturer, Corsair Engineering turned its fortunes around, switching a £67k loss into a £118k profit in 2019. Francis Commercial Kitchen Services went in the other direction, however, with reported profit of £148k in 2018 now a £407k loss in 2019.
Valera, trading as Corsair Wholesale, positively reported, with a £45k loss in 2018 turning into an £830k profit. However, two dealers in the Unitech group both saw profits slide, with Court Catering Equipment’s cut by 59% from £116k to £48k, and Crosby Catering Supplies’ losses worsening by 83% from £42k to £248k in 2019.
Nick Imlah, chairman of ScoMac Catering Equipment and the Unitech Group said: “The management team have been reviewing the company’s cash flow forecasts looking forward every week. The board have considered these forecasts and are satisfied that the cash flow forecasts for the period of 12 months from the date of signing the financial statements, in the light of coronavirus and taking account of certain government assistance, show that the company can meet its liabilities as they fall due.
“Our prudent approach to maintaining a strong cash position, our low level of gearing and supportive funders means that we are well-placed to weather the challenges that coronavirus and any subsequent recession present to us.”
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