Textile company J&D Wilkie posts drop in profit and turnover
J&D WILKIE, the industrial textile company, has posted a drop in operating profit of more than £1 million and a 10 per cent drop in turnover as a result of one-off costs and contracts coming to an end.
The family company based in Kirriemuir, Angus, said the results were in-line with expectations in accounts newly filed with Companies House for the year to June 30 2019.
The company, which celebrated 150 years in business last year, cited future risks as the Brexit negotiations and tensions between the US and China.
The company also closed a subsidiary in India.
J&D Wilkie said in its statement: “Revenue in the year reduced to £16.5m from £18.4m in the prior year, a fall of 10%.
“This reduction was in-line with the directors expectations due to 2018 including several larger contracts which were not expected to repeat in 2019 and other cyclical demand.
“Excluding these factors, the company saw strong underlying growth as a result of the customer led focus on Advanced Textile Technology and the new sales operation in the US continuing to gain momentum, with a substantial increase in revenue in the year.
“The directors continue to see significant uncertainty due to the US-China trade wars and Brexit.”
It said that the company is “well prepared for a no-deal Brexit and as a result the financial statements show a higher year end stock holding level and subsequently higher debt that would otherwise have been the case”.
J&D Wilkie added: “This uncertainty and the use of resources to pay for a no-deal Brexit meant capital expenditure was reduced in the year.
“Post year-end the group board made the decision to close the Stewart Pinned Products Private Limited subsidiary in India. This was enacted in October 2019.
“As a result, an impairment of the remaining investment value of £106,000 has been recognised in the year.”
Operating profit “pre-exceptional items and impairment was £200,000, down from £1.3m in the prior year.
The company said: “The company finished the financial year in a strong position with exciting new product development projects, continued underlying sales growth and excellent relationships with customers who are seeing the undisputed benefit of the Advanced Textile Technology proposition.”
The board has “high expectations for profitable growth in the next financial year”.
The company had 15 fewer employees than the year before, with 90 across manufacturing and office and management in 2019 against 105. Two posts lost were in office and management.