Increasing costs will continue to be a challeng says firm
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Brexit is likely to impact on the cost of living, according to an Inverness-headquartered firm.
MacGregor Industrial Supplies – which has six branches – experienced a rise in turnover and a drop in pre-tax profit for the year ending March 31, 2020.
A strategic report accompanying the firm’s latest accounts stated: “The cost of servicing turnover, particularly increased staff costs, eroded any margin gained from the increased turnover.
“This will continue to be a challenge, with the continual minimum wage rate rises and the expected rise in cost of living with Brexit.”
Sales growth was helped by a first year of trading for its Aberdeen branch.
Turnover increased from £34,431,183 in 2019 to £35,274,598 last year. For the same period, pre-tax profit dropped from £283,047 to £263,327. Cost of sales and administrative expenses increased last year. The average number of employees increased from 298 in 2019 to 318 last year, while staff costs increased from £7,701,380 to £7,893,989.
A directors’ report stated the pandemic has impacted on its current financial year.
“Despite lockdown, the company kept trading across all areas in which it operates to support its customers in key industries and sectors,” it stated.
“The company is a key supplier of PPE, hygiene and other supplies to the food, health, care, aquaculture and agriculture sectors. The company stayed open to ensure vital supplies were delivered to these sectors to allow them to deliver their vital supplies and services to the local areas in which the company operates.
“The wellbeing of our staff was made [a] priority, as was our customers’, and the company operated on reduced delivery services, with branches initially operating on a click and collect basis before reopening, adhering to recommended Covid measures.
“The company mitigated the effects of the initial reduction in trade through using the government’s furlough scheme, securing a CBILS loan and reducing staff numbers through voluntary and compulsory redundancies.
“The supply of goods was challenging and was managed through opening relationships with new suppliers. The company is in a strong position to support its customers moving forward.
“Brexit will be the next big challenge and the company is currently increasing stock levels where it is assessed there will be a risk to supply.
“There continues to be pricing pressures from both suppliers and customers. Therefore, the company will continue to scrutinise supply chains and manage margins accordingly to ensure the company grows in a profitable, sustainable manner and continues to provide a high level of customer servi
