The fall in sales was largely down to a decline in sales to France and Germany, reflecting weak European demand, and a planned reduction in low margin business, but exports overall remained stable and contributed just under 30% to the group’s turnover. Sales to the Middle East were particularly strong, trebling to £600,000, whilst sales to the Irish republic were also good thanks to the completion of a £1m contract with the Irish police. NEAL, the security side of the Group’s business continues to strengthen.
Gross margins improved by just under one per cent, and interest costs were substantially reduced as the result of a debt reduction programme financed from cashflow. Company founder Iain Elliott told us: "These results demonstrate that even in tough times, companies like Canford can continue to do well. The commitment and dedication of our staff have contributed much to these results."
Plans for 2003 include the development of the education part of the business, and an online ordering capability, which will be launched in the summer. Since the financial year end in October, the company has bought back a 35% stake held by 3i, and the company has now embarked on an acquisition strategy which will further consolidate its position in the north east.
(Ruth Rossington)
