As the company supplies the hospitality industry, it has been severely impacted by COVID-19. As a result, it has been in
lockdown for most of 2020 and the company's turnover of £21,009,390 reflected a decrease of 58.5% compared to last
year. The company's gross profit margin increased to 22.96% this year versus 21.77% last year but this is not considered
a normal trading year for comparison purposes. Despite COVID-19, in line with our strategic policy, it acquired Wilks
& Co Wine Merchants Ltd in November 2020 to improve our product portfolio and increase our customer base. Next
year will be a year of consolidation along with continued strategic and tactical focus on operating margin and associated
costs under the scrutiny of the directorship although we do expect margin to be lower as a result of reduced buying
power owing to COVID-19. Turnover and profit will continue to be affected due to the business having to close
temporarily whilst all hospitality outlets were closed owing to Government directive again in Q1 2021. We have used
the Government furlough scheme to ensure job retention. A significant proportion of our operating expenses were
financed through reserves for 2020. In order maintain a strong working capital base we obtained a CBIL for £2m in Feb
2021. The directorship will actively continue to review low margin customers and apply focus to increase the margin or
reduce the turnover whilst increasing our margin and operating efficiencies. Considerable focus has and continues to be
applied to buying opportunities to assist with maximising margins. The directorship continues to proactively seek to
further develop the growth of the business by strategic geographic acquisition and organic growth, whilst continuing to
protect reserves within the business.
|