Annodata still eyeing £100m despite big sales drop in FY13

Print and comms services outfit boosts profitability in defiance of 'difficult trading conditions'

A tight grip on operating costs allowed print and comms channel player Annodata to grow its underlying bottom line during its 2013 fiscal year, despite a hefty decline in revenues.

Recently published group accounts for the year to 30 June 2013 reveal that turnover at the Hertfordshire firm dropped 16 per cent year on year, coming down from £57m to £48m. But gross margins rose 600 basis points to 36 per cent, resulting in operating profit growing 10 per cent to £1.06m. However, a £150,000-plus write-down related to an investment in a joint venture contributed to the net bottom line going backwards by £66,000 to £394,513.

Despite the revenue reduction, the directors' report for the year asserts that "the group's vision is grow turnover to £100m over the coming two years by continuing to invest in client relationships, employees, and its product/process portfolio".

"The sales decrease this year was due to difficult trading conditions, although this was more than compensated for with improved margins, following tight cost control," adds the report. "Overheads also continue to be tightly controlled, being one per cent down on the prior year."

Annodata's employee numbers declined slightly from 298 to 289 over the course of the year, with the wage bill dropping 1.4 per cent to about £11.3m. The firm closed the year with net funds of £4.6m, down from almost £5.1m as of year-end FY12.