Lloyd Fraser “performing well in challenging market”

Lloyd Fraser Holdings said the company had shrugged off operational challenges created by the pandemic and was confident it would continue to operate profitably.

Reporting results to 28 February 2021, the Rugby-based 3PL said turnover was down 31.8% at £12,610,579 compared with the previous year.

Gross profit decreased by 50.2% to £1,438,008 in the period but pre-tax profit was up 15% at £1,651,845.

In its business review the company said it had “performed well in a challenging market”, blaming the drop in gross profit on the various lockdowns of the retail sector when non-essential shops were forced to close.

However, the company made use of the Coronavirus Job Retention Scheme during that time.

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“Future strategy will focus on this business sector and continue to develop added value services to maintain the company’s healthy position and long-term client relationships,” the review continued.

“Both during and after the year end, Covid-19 created significant operational challenges which were overcome promptly and safely.

“Demand for services in the fashion segment has been disrupted as a result of the various lockdowns, however the company has managed its costs and continues to report a profit in the period post year end to the time of sign off of the financial statements and continues to provide clients with quality safe services.

“Our experience over the past 18 months leads us to be confident that the ongoing disruption arising from Covid-19 can be managed effectively and the company will continue to operate profitably.”

It added that it could not identify any specific risks in the coming year: “In terms of Brexit, Lloyd Fraser is exposed to the same risks as most British businesses in the distribution sector, namely market volatility, wage inflation and a drop in consumer demand as a result of inflation.”