Importer Fruco plc has posted improved profits and turnover for the past financial year, but warned it would be difficult to maintain the same level of profitability.
Pre-tax profits at the East Sussex firm rose 46 per cent to £232,324 in the year to 31 December 2009, with turnover up two per cent to £7.1m.
The company said its success had been in being selective about what it sold as well as seeking out new suppliers. “We have worked very hard,” said managing director Simon Lane. “I don’t think the trade suffered particularly in 2009. A lot of small to medium-sized privately owned, director-driven companies such as ours had a decent year. But the first six months of 2010 have been very difficult: we are seeing the double recession effect. I have been in this business 32 years and can’t remember it being so difficult.”
The director’s report warned that it would be tough to continue the growth seen in the last year. “We do not anticipate being able to keep profit and turnover at the 2009 level but would hope that it does not fall below the 2008 level.”
The directors’ report also highlighted the trend of supermarkets increasingly dealing directly with growers as a difficult background against which importers are having to do business, while Lane added that bad debt was another problem for the industry.
“We have not had any bad debt for a while and are very, very cautious,” he said. “Everybody needs to tread very carefully. We are fortunate: we are spreading our risk, getting our heads down and fighting for every penny.”
