Brother sees profits slide but sales rise

TECHNOLOGY group Brother UK has seen its annual profits slide by 30%.

But the group, based in Manchester, said its figures were in line with expectations and down to additional marketing costs and the impact of currency fluctuations.

In the year to March 31 turnover grew by 2% to £103m while pre-tax profits dropped from £9.4m to £6.5m.

The company described the results as “positive” amid a turbulent economic climate. It cited rising import costs, a lack of available trade credit insurance and declining business confidence and investment as the biggest hurdles.

Phil Jones, sales and marketing director, said: “The challenges that have faced all companies in our sector have created a perfect storm that has made conditions extremely turbulent.

“The single biggest issue has been the withdrawal of trade credit insurance which has put a virtual brick wall in between companies that trade with each other. The performance of Brother UK shows the strength of our products, customer base and our ability to shape our business to meet difficult market conditions.”

Brother said it grew its share of the mono and colour laser printer market over the last 12 months by focusing on small and medium-sized businesses.

It increased sales in the healthcare and education markets and has invested heavily in its resellers across the country to help push the brand with small businesses.

Brother UK, which has around 180 staff, sells printing, scanning ,copying and fax machines as well as inkjet and laser printers. Its parent company is Japan’s Brother Industries.