A maker of personal care and beauty products in Peterborough saw its turnover fall by just 0.7% despite a near £14million meltdown in sales of Covid hygiene products.
But the company also warned that inflation, supply difficulties and rising energy costs meant that the last six months of a financial year, which was “transformational” for the company, were extremely difficult and that the problems were likely to continue.
Creightons, based in Lincoln Road, Werrington, where it employs around 340 people, says sales of £14.6 million of Covid19 hygiene products in its financial year to the end of March 2021 fell to 300 £000 for the 12 months until the end of last March.
But managers say they have successfully replaced those “one-off” hygiene sales generated by the Covid-19 pandemic, with growth in each of the branded, private label and contract manufacturing business units. .
This means Creightons core business revenue increased by 21.8%, up £10.3m to £57.3m, from £47m the previous year. .
Add to that the loss of hygiene and the impact of acquisitions, total revenue was down just 0.7% to £61.2m, from £61.6m last year. last year.
After-tax profits for the year fell by £1.2m to £3.1m, from £4.3m in 2021.
The company also announced that it will not pay a final dividend to shareholders this year.
William McIlroy, Chairman of Creightons Plc, said: “The group has managed to maintain its revenue during the year.
“We replaced the one-time hygiene sales of the previous year and generated growth in all areas of the core business.
“We have completed two business acquisitions which put us in a good position to continue to develop the group’s branding activities.
“We will continue to react proactively to difficult market conditions, but remain open to new business opportunities.”
Bernard Johnson, Chief Executive, said: “The group’s team has performed exceptionally well in the face of the challenges posed by Covid-19, the global supply chain and inflationary pressures.
“We will continue to work closely with our customers while resolutely embarking on a program to reduce overhead and improve manufacturing efficiency.”
Figures show Creighton’s own-brand sales (excluding hygiene products) increased by 37.7%, sales of own-brand products increased by 9.5%, total overseas sales rose 45.6% to £10m from £6.9m. in 2021.
It also successfully completed the acquisition of Emma Hardie and Brodie & Stone with combined sales from its acquisitions during the year of £3.6 million with revenues of £2.3 million. £1.3million from Emma Hardie from July 28, 2021 and £1.3million from Brodie and Stone from September 24, 2021.
Looking ahead, the company says it faces unprecedented increases in product and energy prices as well as significant disruption to the global supply chain.
These pressures have resulted in delivery delays from suppliers, increased input, energy and overhead costs.
The company says, “These pressures are likely to continue.
“We will continue to be proactive in our response to these challenges and, in particular, we will seek new opportunities and strive to
mitigate any price increases through price recovery, product re-engineering, alternate sourcing and other cost control measures.
He adds: “This year has been a transformational year for the Group with the successful acquisition of two brand-based companies strengthening our brand offering and providing a strong foundation in premium skincare on which we can build. support us very quickly given our worldwide distribution, development and manufacturing capabilities.
“However, the last six months of the exercise have been extremely difficult.
“As a result, we have embarked on an overhead reduction and manufacturing efficiency improvement program which is expected to significantly reduce operational costs by the end of the year ending March 31, 2023. much of which will be delivered and added to net income at the end of September 2022.”
Peterborough manufacturer takes action to face dual challenge