Bosses of Gateshead signage and graphics firm Astley Signs say they are pleased with its performance despite growth being reined in by economic uncertainty.
The Team Valley business, which was last year acquired by Swedish group Mindelon AB, reported turnover of £15.08m in the year to the end of September, compared with £7.27m in the shorter six months to the end of September 2022 and with £16.4m in the year to the end of March 2022. Astley said it was encouraged to have broadly maintained sales levels during the year, but warned that opportunities for growth were being hampered by global economic challenges including the war in Ukraine, inflation and higher interest rates.
Accounts filed at Companies House also show operating profit of £2.48m, which included one-off profit of £1.51m from property disposals and without which was £963,217. That compared with £437,894 in the six months before and £1.9m in the year prior to that. The 150-strong firm said it operates in a very competitive market where competitors can bring in aggressive pricing.
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In June last year Astley, which has produces signs for high profile customers such as Sainsbury's and Hilton Hotels, was acquired by Mindelon, which specialises in investing in retail technology businesses, and pledged support for the Gateshead firm. The undisclosed deal saw shareholders Gavin Redhead, Astley's managing director, and David Forrester, sales director, stay on with the company, while chairman David Redhead was stepping down.
Writing in the documents, director Ulrica Lindunger, the head of Mindelon's Retail Solutions Business, said: "Growth remained restricted as a result of recent global economic factors including the impacts of events in Ukraine which have also pushed up inflation and interest rates. The company's main operating sectors have remained buoyant though, and it is therefore encouraging to have maintained this level of sales.
"These factors have also led to higher material costs, but customers are largely accepting of associated price increases. Relationships remain strong with many of our repeat clients who provide a consistent pipeline of work. The steady nature of the work allows the company to plan expenditure, maximise efficiencies and maintain a healthy gross profit margin."
She added: "The directors are pleased with profit levels in the current uncertain economic environment. The company remains protected from increasing energy costs having secured extended fixed price deals."
In February this year Mindelon sold a majority stake in another of its signage business, digital screen specialist SignMedia, back to its original owners only a year after having acquired it.
