Westcoast parent company Kelido has reported higher profits on lower sales as it paid tribute to the distributor’s strong performance.
According to its annual accounts, Kelido’s revenues for the 12 months to 31 December fell three per cent to £781.4m. However, retained profit rose sharply from £94,000 to £2.15m.
The group's average number of employees shrank from 896 to 747 year on year.
Kelido claimed that Westcoast had delivered “strong results” against a challenging economic backdrop, growing both profits and sales. The broadline distributor turned over £651.2m during the year, the company said earlier this year.
Kelido is the holding company for a number of other entities including Orion Storage Solutions and XMA. It said that 2009 had been a year of consolidation for these businesses.
“Across the rest of the Group, following acquisitions in the preceding three years [including XMA], the strategy was to drive consolidation across the various operating entities and platforms,” it said.
“This strategy, and investment in staff and IT successfully delivered over £6m recurring operational cost savings and a £30m cash inflow in 2009. The directors remain confident that the improved cost base and strengthened balance sheet ensures that the group continues to be well placed to compete and take advantage of new opportunities as they arise.”
Kelido also revealed it is in advanced negotiations to renew a three-year banking facility agreement that will come to an end on 30 November.
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