Stax profits fall 23%

DIY wholesaler Stax Trade Centres beat its own performance expectations in a tough year, thanks to a focus on increasing its own brand product range, but profits still suffered.

The Worsley-based company saw turnover increase by £255,000 to £80.8m in the year to August 29, 2009, a result that was “above expectations”, it said in newly filed accounts.

However, pre-tax profits did suffer – falling 23% to £2.3m from £3m a year earlier.

The company, which has hardware and DIY branches in Manchester, Leeds, Birmingham and Bristol, said the sales growth was achieved despite the economic slowdown and inflationary pressures.

Its strategy was to focus on the continued upgrading of its Bristol branch and the expansion of its product range, particularly across own brand lines.

Staff numbers across the group increased by eight during the year to 476 as the company relocated its Manchester store in September 2009.

The new location had close to double the floor space, and four times the storage capacity of the previous store. The company invested £11m in the new store, with £6.5m of funding from HSBC.