CR Smith, the Scottish, Fife-based double-glazing and conservatories specialist, saw its profits drop almost 80% due to difficult economic conditions and depression in the housing market but the comp…
CR Smith, the Scottish, Fife-based double-glazing and conservatories specialist, saw its profits drop almost 80% due to difficult economic conditions and depression in the housing market but the companys chairman insisted he was enjoying the challenge. The accounts of CR Smith are unlikely to show a pre-tax profit or turnover figure because the firm files under special Companies Act provisions, which allow small companies to produce abbreviated financial statements. However, a company statement revealed that operating profits were GBP 135,000 for the year to the end of March 2010, compared with GBP 672,000 the previous year. Turnover was GBP 18 million, but no comparable figure was provided. According to a company spokeswoman: While the figures are understandably down on the previous year, the accounts … also reflect a major capital investment programme undertaken by the family business, which has continued into 2011. The company said that during the year to March 2010, it invested more than GBP 562,000 in tangible fixed assets, principally on its show complex as well as IT. In the current financial year, the company has also invested a further GBP 600,000 on new vehicles. CR Smith said it has funded its expansion with existing cash held in the business without the need for loans. At 2010 year-end, the company had no bank borrowings. Due to difficult times in the housing market across the UK, home sales are down by half compared to 2007 and total bank lending over the same period has also halved as banks cut credit. Gerard Eadie, CR Smiths chairman who acquired the business 35 years ago, said: CR Smith operates in a very tough market and current economic conditions have seen sales slow, but we have always taken a very positive approach to our business and we are investing in what makes us strong and distinctive our product and our presence. Weve worked hard to develop the business, develop our products and get the pricing structures right. As a result, weve seen inquiry levels shoot up, proving that the desire for purchase and the underlying market is still there. The company, which now employs almost 350, also said it was continuing to recruit. CR Smiths investment programme involved the expansion of the companys Factory Direct service and roofline products, while plans include a significant investment in its Cowdenbeath manufacturing plant. In November 2010, the company announced the expansion of its Factory Direct business into the north of Scotland in response to demand from construction companies and self-build customers. The operation, which sells but does not fit windows and conservatories, was trialled in Inverness during which its 800 monthly unit sales rose by an eighth. All windows sold through Factory Direct are made at CR Smiths factory in Fife. As a result of the Factory Direct move, the firm expects to recruit staff in Inverness and Aberdeen. CR Smith posted a pre-tax profit of 584,361 for the 12 months to 31 March 2009, an increase of 129% compared to the previous year.