Investment pays off as Crown Paints profits leap
CROWN Paints, the famous Lancashire paint manufacturer, has reported a jump in annual profits as sales rose and it became more efficient.
The company, owned since 2011 by Denmark-based group Hempel, said improving consumer confidence and investment in new products boosted earnings.
Profits surged nearly 40% from £15.7m to £21.9m in 2013 as sales rose more modestly, from £192.6m to £193.5m.
This allowed the business to hike the dividend it paid its parent to £18m, from £10m the year before.
Writing in the group’s annual accounts, recently filed at Companies House, managing director Joe Devitt said: “The performance of the business during the year has been positive with further progress made towards meeting the company’s strategic targets.
“The investment in the brand and continuing improvement in service levels, product choice and quality have led to further year-on-year growth in both volumes and turnover. The company continues to invest heavily in both its manufacturing facilities in the UK and by doing so is delivering improvements in productivity and ensuring that the company remains competitive.”
He added: “Market conditions improved slightly in 2013 and, in line with economic forecasts, a similar improvement is anticipated for 2014. The directors believe that the investment in brand and infrastructure will allow the company to deliver another year of growth, both in the UK and overseas. The continued offer of value, service and choice to our customers remains the key to our development.”
In July the company said it would be investing £500,000 at its Polymer Plant in Darwen wit the support of the local authority and Regenerate Pennine Lancashire. The project includes operational upgrades including the further automation of process controls and associated equipment.
Crown, which has more than 1,000 employees, the majority based at its two manufacturing operations in Darwen and Hull, has recently renewed its sponsorship of the ITV show Through The Keyhole.
