Creightons boosts revenue and profits
Creightons Plc in Peterborough, which sells personal care and beauty products, has continued its recent expansion with organic sales growth of £4.2 million (13.8 per cent) resulting in sales of £34.8m for the year ended March 31.
Operating profit increased by 8.1 per cent to £1.635m. Profit before tax was 8.1 per cent ahead at £1.609m. The dividend remains unchanged at 0.23p per share.
As previously reported, the board made a decision to outsource the manufacture of its own branded products at an increased marginal cost in order to facilitate the long term growth plans for the business.
These additional costs restricted the growth in profit before tax but the board considers that continued underlying profit growth supports the decision to outsource some production while the group puts actions in place to increase capacity.
It says the balance sheet remains strong with net cash in hand after significant investment in working capital, product development and fixed assets to support organic growth.
Own branded sales grew 13 per cent, including export sales growth of 15 per cent.
Managing director Bernard Johnson said: “The team across the group has performed exceptionally in a difficult environment, coping well with the challenges arising from significant organic sales growth, with continued expansion in our customer base and product offering.
“We are continuing our programme to increase capacity which will enable the group to meet the future demand, from the UK and overseas, for its products and services, whilst reviewing areas of the business that are not meeting our profit expectation.”