In the year ending March 2011, the company has grown significantly in both turnover and profitability. Fletchers Group is reaping the benefits of its successful turnaround programme implemented over the previous three years, the results of which can be seen below:
| 2011 | 2010 | |
|---|---|---|
| Turnover by operating site | £93.2m | £85.2m |
| Sales per employee | £109.3k | £97.4k |
| Operating margin, before exceptional items | 1.2% | (0.5)% |
| EBITDA, before exceptional items | £3.5m | £2.2m |
| Working capital | (£2.8) | £nil |
| Debtor days | 46 days | 44 days |
This growth has been achieved organically, with both new and existing customers, and through investment in new product areas, and is in sharp contrast to the external economic environment. Performance in the year has been affected by an increase in input prices, but a combination of better procurement and agreeing increases with customers has mitigated this impact.
The company has also continued to invest in efficiency projects in the year, with a consultancy project in the Barnsley business following on from the successful projects in Sheffield and London in prior years.
Fletcher’s Group continued its strategy of reinvesting cash in new assets, with £3.4m of capital expenditure in the year. A major investment was made in acquiring capabilities in a new product area, as well as continuing the programme of maintaining the quality of existing assets, evidenced by the replacement of the freezing plant in the Manchester business.
The focus on cashflow management and working capital has been maintained, and at the end of the year produced cash balances of £4.8m, reflecting the continued improvements through co-operation of the company’s supply base to extend credit further given the financial strength of the business.
Within the period, the company agreed new banking facilities with Credit Agricole, with additional funding being made available on more competitive rates. An exercise was undertaken within the Eliot group to re-organise the structure of lending between the Eliot companies. The result is that there are no intercompany loans between Fletchers Group and any other group company save for the immediate parent and ultimate parent company, Eliot Holdco Luxembourg SARL.