Gunn cautious after much-improved results

GUNN JCB (Holdings), one of the largest JCB dealers in the country, has reported a sharp upturn in sales and profits for last year.

The Altrincham-based group, which has 10 depots in the North, Midlands and North Wales, said despite the improved performance in 2010, it is mindful that economic conditions may take a turn for the worst in the short term.

Gunn JCB sells new and used JCB machines and genuine JCB parts  – it was one of JCB’s first dealers and has worked with the manufacturer since 1958.

Its depots are located in: Stoke; West Midlands; Hereford; Shrewsbury; Ruthin; Warwick; Longridge; Hilton and the Isle of Man. Gunn as around 140 staff.

In the year to December 31 2010 sales surged 18%  from £54.7m to £64.4m and profits leapt from just £220,000 to £1.4m.

In their business review included in the group’s Companies House filing, Gunn’s directors said performance had been ‘satisfactory’ during the year, with the benefits of cost cuts in the last two years and improved sales boosting profits.

Despite enjoying ‘strong demand’ from customers in the early part of this year, directors warned the tough market may hit its profits in the short term.

“Going forward short term profitability of the group could be affected as the markets in which we operate still hold some challenging issues due to the continued uncertain economic climate surrounding the Euro as well as UK Government cuts in public expenditure that have yet to take full effect along with possible product supply problems due to the Tsunami in Japan.

“However the directors are optimistic of the group and the company’s future performance and long term profitability.”