Nimans cracks £50m sales in 2009

Distributor claims to be ready for more growth after sales spike last year

Cautious approach: Nimans has "measured optimism" for the future

During a transitional 2009, comms distributor Nimans cracked the £50m turnover barrier and claims it is primed for growth.

Accounts filed with Companies House last week reveal sales for the year to 31 December were up nine per cent year on year to £51.2m. Operating profit increased almost eightfold to about £435,000. During the year Nimans acquired rival Rocom in a £12.45m cash deal.

The directors' report for the year claims the unyielding economic environment prevented the Mancunian firm from taking full advantage of the company’s restructure and new-look senior management team.

"The continuing adverse economic situation and the highly competitive market has restricted our ability to maximise the benefits of a significant restructuring of the business during 2009," said the report.

"Despite this, turnover increased by in excess of £4m, albeit at the expense of a deterioration in gross margin. The net effect has been a creditable increase in operating profit and a continuing strong balance sheet."

During the year the amount due from debtors and owed to creditors increased significantly. As of the end of 2009, Nimans owed £14.3m to creditors and was owed £19.6m by debtors, compared to figures of £7.7m and £7.1m respectively at the start of the year.

During last year the average monthly number of employees at the distributor fell from 184 to 166. Sales and distribution staff numbers fell from 140 to 118. The company forked out almost £250,000 in severance money as part of the restructuring process that took place during the year.

The directors' report closes on an upbeat note, claiming that Nimans is well placed for growth, as and when the economy picks up.

"Although the Company anticipates that 2010 market conditions will remain difficult, we nevertheless expect a further significant improvement in overall performance, as the new management team continues to pursue a growth strategy at enhanced margin whilst implementing appropriate cost containment measures," said the report.

"The company has repositioned itself for any upturn in the economy. Results to date indicate a measured optimism."

Nimans sales director James Perkins discusses the Rocom integration, the firm's growth plans and the state of the distribution industry in an exclusive interview in the 18 October issue of CRN.