Canford treble profits despite poor market conditions

The Canford Group have announced that their pre-tax profits rose from £142,000 in 2001 to £545,000 in 2002.
Figures show that while total sales fell by £1,250,000 in the last financial year, profits substantially increased.
The fall in sales was largely due to declines in sales to France and Germany, reflecting weak European demand, and a planned reduction in low margin business, but exports overall remained stable and contributed just under 30% to the group’s turnover.
Sales to the Middle East were particularly strong, trebling to £600,000, and sales to the Irish republic were also buoyed due to the completion of a £1 million contract with the Irish police. NEAL, the security side of the Group’s business, continues to strengthen.
Gross margins improved by just under 1%, and interest costs were substantially reduced due to a debt reduction programme financed from cashflow.
Company founder Iain Elliott said:"These results demonstrate that even in tough times, companies like Canford can continue to do well. The commitment and dedication of our staff have contributed much to these results."
Plans for 2003 include development of the education part of the business, and an on line ordering capability, which will be launched in the summer.
Since the financial year end in October, the company have bought back a 35% stake held by 3i. Company chairman Hugh Morgan Williams said: "This move was mutually agreed between 3i and Canford as a way in which the business could now move forward."
3i have held an investment in the business since 1991.
(GB)