Acal shows caution as profits rise, sales slip
Acal has seen a slight fall is sales revenues in the last year in what the distributor described a “challenging” market conditions.
However, underlying operating profit of £8.1m was up 9% for the year ended 31 March. Pre-tax profit increased by 42% to £2.7m.
“Given the continuing difficult economic conditions in Europe and the uncertainty of the timing and pace of a recovery, we remain cautious for the year ahead, but well positioned to accelerate growth as and when conditions improve,” said Nick Jefferies, group chief executive, Acal.
“The business has performed well during the year delivering a 9% growth in underlying operating profit and free cash flow of £10.5m,” said Jefferies.
According to Jefferies, the distributor has taken market share from smaller independent competitors and this has helped to attract new supply partners to our business.
“The business is resourced to take benefit from the growing pipeline of new opportunities and is well positioned for further growth when economic conditions improve,” said Jefferies.
Full year dividend increased by 7% to 8.0p.