Advanced Supply Chain suffered a 44% drop in pre-tax profit in the year ended 30 June 2014, according to newly published accounts at Companies House.

The accounts show that Advanced Processing, which trades as Advanced Supply Chain, suffered a pre-tax profit fall to £730,698 (2013: £1.3m) after a major, undisclosed customer, was sold to new owners.

In the strategic report that accompanied its Companies House filing, the firm said pre-tax profit was “ultimately lower than originally expected” after restructuring its operation, which included a one-off cost amounting to £443,000, and adding staff to meet the demands of the new relationship [following its major customer's sale to a new owner].

It said the restructure, the nature of which was not specified, had helped develop a “positive future for the relationship between the group and the new owner”.

Turnover for the year to 30 June 2014 rose marginally from £31.6m to £31.9m, while its pre-tax profit margin fell from 4.1% in 2013 to 2.2%.

Its accounts also show that the firm repurchased shares from a dissenting shareholder who held 13.42% of the share capital in the year. The report said this was the principle reason for a reduction in net assets from £4m to £2.7m contained in the filing.

The operator's accounts also state that it made a “substantial investment” in IT during the year that  “greatly assisted in retaining existing and attracting new customers”.

This saw it win a contract with bathroom product manufacturer Ultra Finishing Group, but later in 2014 it lost its contract with Go Outdoors to Norbert Dentressangle.

There was no update on the progress of a writ brought by Go Outdoors against Advanced Supply Chain earlier this year.

Advanced Supply Chain secured a number of new contracts in the period that will begin during the next 12 months, and said in its accounts that it anticipated improved margins during the next year

“The group has continued to grow in a challenging market and during a recession,” the directors said in their strategic report. “This growth is testament to the dedication and commitment of all those who work for the group.”

The company was unavailable to comment as this article was published.

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