Profit and revenue higher but Creightons digs in for no deal Brexit
Consumer goods manufacturer Creightons plc, based in Peterborough, has increased pre-tax profit and revenue in the half-year to September 30 but is working hard to ensure the sunny landscape is not obscured by commercial clouds as Brexit looms.
Revenue increased by £8.62m (36.3 per cent) to £32.37m and profit before tax by £1.13m (63.8 per cent) to £2.90m; the business had cash in hand of £2.38m at period-end.
Creightons has successfully negotiated the COVID-19 pandemic with increased sales, output and profits and has invested heavily in boosting output and manufacturing capability – but it is preparing for a no-deal Brexit.
It has already opened subsidiaries in Ireland and Germany to help deal with any fall-out.
Chairman William McIlroy said: “As the UK government continues its negotiations, uncertainty remains as to the extent to which our operations and financial performance will be affected in the longer term.
“At a group and business level we have continued to prepare for changes in legislation, trade agreements and working practices in order to take advantage of any opportunities arising and to mitigate risk.
“The group operates globally and may be affected by Brexit developments, which could provide a number of challenges. We are continuously monitoring events and putting mitigating actions in place including the registration of a new subsidiary Potter & Moore Ltd based in Ireland to be used as an EU base for recording regulatory information.
“Trading with our EU customers and suppliers will be more complex. The company has also established a subsidiary in Germany, Creightons GmbH, to facilitate trading within the EU.
“Any actual or perceived barriers to free trade are an obvious area of concern for us. As a result of Brexit, the group is exposed to potential currency fluctuations.
“Brexit and trade barriers continue to be an integral part of the group's ongoing risk management and review process, for which solutions to address the risks are identified and implemented.
“Although there is still uncertainty surrounding the outcome of Brexit, we do not expect the direct consequences of Brexit to have a material impact on the group.”