WH Malcolm sees profit and turnover dip despite strong performance from logistics arm

WH Malcolm saw profit and turnover dip last year, despite a “robust” performance from its logistics arm.

The company's latest annual results for the year to 31 January 2017 revealed a turnover of £200.1m compared with £207.2m the year before. Operating profit, before exceptional items relating to the firm’s pension scheme, amounted to just over £9.7m (2016: £10.4m).

Pre-tax profit was £7.6m in the period, compared to a pre-tax profit of £17.2m in the prior year. 2016's total was however boosted by a pension windfall.

Despite a strong performance by the logistics division, which saw its turnover rise in the period, falling levels of construction activity contributed to the overall decline in both profit and turnover, according to the strategic report to the annual accounts.

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The report added that “despite competitive trading conditions in both sectors it is encouraging to report that gross margins remained in line with the previous year”.

Looking ahead the company, which is the core business of the Malcolm Group, said results in both divisions were “in line with expectations” in the first few months of 2018.

Speaking about the latest results, Malcolm Group chief executive Andrew Malcolm said: “With net debt at 31 January 2018 at £10.2m compared to £12.1m in the prior year, and after significant capital expenditure [£17.1m], the group remains well positioned to take advantage of new business development opportunities as they arise.”