Record profits as Canford strengthens market position

The pro audio equipment manufacturer has seen gross profits rise to £5.06million, and net profits for the year after taxation increasing by 52 per cent despite turnover falling to £15.7million
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Canford CEO and founder, Iain Elliott

Canford CEO and founder, Iain Elliott

Reporting on its year end to October 31 2018, Canford Group Limited, Washington, Tyne and Wear based manufacturer of professional audio equipment, has seen gross profits rise to £5.06million, and net profits for the year after taxation increasing by 52 per cent despite turnover falling to £15.7million.

Working from its headquarters in the North East of England, and supported by a wealth of in-house technical knowledge and language skills, the Canford Group incorporates metalwork manufacturing on the Isle of Portland (Dorset) and a European Sales office in Erstein, close to Strasbourg in France.

Canford operates a number of comprehensive websites which serve as the Canford catalogue. Its online presence incorporates a main website at Canford.co.uk, with French and German versions Canford.fr and Canford.de respectively.

The group continues to develop its own fibre termination facilities with investments in staff training and specialist equipment required for the production of its fibre camera cables for premium live television broadcasts, and heavy-duty fibre audio cables for outdoor festivals and concerts.

In the period covered by the report, Canford made a strategic decision to increase its stock holding to further improve its order fulfilment and ensure it can continue to meet customer demands throughout the possible disruption of the UK leaving the European Union. Stock was increased 15.9 per cent to £2.85million.

Commenting on the company’s strategic report, John Francis, chairman, added: “Canford’s own brands are an important source of sales growth, with continuing high demand for both standard products and custom variations. We have gained an international reputation for producing extremely high-quality metalwork, which is now specified for audio and video connection points in many of the highest profile sports stadiums in the Middle East.

“We have succeeded in growing sales margins within a competitive market so that profitability has improved despite the loss of the Ash Distribution turnover. The directors are proud to report that the year ended October 31 2018 was the group’s most profitable year to date, with profits more than double the amount achieved in the previous year. We express our thanks to our loyal staff, customers and suppliers for this achievement.”

The company acknowledges national and international uncertainty about the nature, timing and consequences of Brexit. Canford is an international business and the directors view this with concern. A full “Brexit Risks Review” has taken place, which has highlighted that Canford’s substantial experience in handling exports to non-EU countries stands the business in good stead for changes in the business process. Some measures to anticipate events have taken place, including the acquisition of strategic stocks and discussions with logistics suppliers, and the company has set out its intention to take advantage of its long-established French subsidiary, Canford Audio SARL, to support European sales.

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