JW Filshill has reported a significant increase in turnover and profit for the year ending 31 January 2024.
The wholesaler that supplies KeyStore stores and independent retailers across Scotland and North England saw its turnover rise by 6% to £215m, up from £203m in the previous year.
It saw operating profit jump from £2.9m to £4.2m as it continued to deliver against a “clearly defined corporate strategy and ambitions for the future”.
Gross profit increased to £22.3m, up from £19.4m, while net assets increased to £21.6 million compared to £18.9 million the previous year.
Keith Geddes, chief financial and operating officer, said improved growth and profitability was “particularly impressive” given that it relocated from its previous headquarters at Hillington to its purpose-built site in Renfrew during the period.
“The massive effort put in by all Filshill employees and the support we received from suppliers and customers was much appreciated,” he said. “The new facility is a major step forward in delivering our planned growth and business improvements, allowing us to push forward in achieving the ambitious targets we have set for ourselves over the short, medium, and long term.
The company invested £6.6m over the past two years in its new facility and other projects, demonstrating its “commitment and confidence” in the future.
The new distribution centre has boosted operational efficiency, allowing Filshill to explore new opportunities with suppliers and customers.
Filshill has ramped up its investment in technology and data information, forming a data and reporting team to identify opportunities where data, machine learning and AI could be used to improve its business
However, the group pointed to ongoing inflation and increases in the cost of living, with increases in the cost of fuel and food and drink causing “uncertainty for the group, our staff, our customers and suppliers”.
To manage these challenges, the company continues to measure revenue, gross margin and operating profit as key financial indicators and monitor non-financial KPIs including staff performance, grammes of carbon created per case, vehicle fuel performance, sales service levels/ range achievements, unanswered telesales call, returned orders, and early warning date codes.
“The independent retail market remains highly competitive and challenging, and we seek to manage the principal risk of losing customers by aiming to deliver best-in-class customer service. Any loss of support of key suppliers in terms of supply or credit is a key risk,” Geddes added.
Simon Hannah, group chief executive officer, said Filshill engagement with its workforce on health, mental health and wellbeing remained key to its activities, with financial planning given the cost-of-living crisis, suicide prevention, and healthy eating all featuring in regular support sessions.
“Engagement with charities and local support organisations around our Westway site but also in individual Keystore customers’ neighbourhoods is targeted at areas identified through feedback sessions with staff and customers to maximise the support we give the Filshill team and maximise our engagement with the local community. We are proud of our contribution to supporting our community,” Hannah said.
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