Higher prices dent Evans’ profits

HIGHER raw material prices have dented profits at an historic Preston chemicals business.

Evans Vanodine, established in 1919 in Salford by chemist William Charles Evans, saw sales rise by 7.4% to £18.7m in the year to March 31.

But higher costs left the family-owned business, which makes chemicals for the cleaning industry and products used to protect livestock, with a 57% drop in pre-tax profits to £168,655.

In his director’s report chairman Derek Evans said the devaluation of Sterling and the higher prices the group pays for raw materials had led to a “disappointing result”.

Mr Evans added that his view in 2008 that profits were heading in the right direction was now “inappropriate”.

He said: “Disappointing? Yes, but the enthusiasm within each department of the company demonstrates that although the world is at present going through a traumatic economic period, we will pull through it all the stronger to face the future and so drive the company to greater and greater heights.”

Higher profits are expected in future thanks to a cost savings programme and the price of materials which are now starting to decrease.

Evans, which employs 140 staff and exports to 60 countries, initially specialised in developing and manufacturing soap and essences, which were sold to cinemas, theatres and businesses in the North West.

The company relocated to Eccles in the 1940s and later to Preston where it has carved a niche developing cleaning products used in schools and hospitals and disinfectants used to prevent serious diseases such as foot and mouth and bird flu.

No one at the group could be reached for comment.