News

Reinvestment and structural focus has helped S&S Distribution increase pre-tax profit by 14%.

The palletised goods distributor has invested £626,830 in new and replacement vehicles. Its internal structure concentrates on distribution, yard and warehouse operations, customer care and finance, with managers responsible for specific business areas.

"As a direct result of this focus we have been able to manage an increase in turnover of 8%," the directors state in their business review.

Pre-tax profit for the year to July 31, 2006 was £356,952, rising from £313,099 in 2005. Gross profit was up 13% to £1.46m in 2006 from £1.29m in 2005, while operating profit increased to £355,434, from £313,099 in 2005. Net assets were worth £458,463 in 2006, more than double the £203,496 in 2005.

The company's debtor management has been a "success", says the directors, with a 3.9% reduction in trade debtors compared with 2005. Bad debt has been reduced by a "concentration on financial control".

But key risks identified for the business include "the uncertainty of fuel costs, increasing congestion and future legislation".

"Our success is based on a strategy of continued investment and customer care, which are intended to generate growth and maintain custo-mer retention," the review adds.

S&S Distribution increased average monthly staff numbers by four - or 6% - to 68 in 2006, but payroll costs were up 13% to £612,010 in 2006 from £540,107 in 2005.

Directors' emoluments rose to £136,928 in 2006 from £58,831 in 2005. No dividend is to be distributed for 2006.