Senator sitting comfortably as profits surge
LANCASHIRE office funiture manufacturer Senator International has reported strong financial results, with turnover climbing 9% to top £100m for the first time, and profits leaping too.
The family-owned company, which is based at the Altham Business Park, Accrington, hailed a “successful year” as profits surged from £552,000 in 2010 to £3.3m.
Turnover grew in all markets, with the UK – the company’s number one area for sales of chairs, desks. tables and storage, rising from £79.7m to £82.5m.
Sales in the EU rose from £3.4m to £4.7m and in the rest of the world – notably the US – where Senator has an Ohio-based subsdiary, revenues climbed from £9m to £13m.
Director Robert Mustoe, whose father Colin, Senator’s chairman, founded the business in 1977, said Senator had controlled costs while growing sales.
He said: “The group continues to invest heavily in product development for the future of the business, but despite this investment, it maintained a good control over expenditure during the year, which in spite of the increase in sales saw a pleasing reduction in distribution costs and administration expenses.”
Mr Mustoe said the international operations had continued to make progress, with the US arm growing sales 12% and generating a “healthy profit”, while Senator BV – the Netherlands-based subsidiary – made a “reasonable” profit for the first time on sales of £1.5m.
During the year Senator invested £3m in extended its factory in Huncoat, Lancashire, which allowed the group to move its Timack business, which makes chair frames, and was previously located in Darwen there.
Mr Mustoe added: “The group’s financial position remains extremely strong with net assets of nearly £29.5m.
“The directors continue to take a realistic view of future trading prospects, having in mind the general economic climate, but are confident that the group will continue to trade successfully and maintain a strong financial position.”
He noted too, that despite increasing sales to £100.9m, the group had not had to increase its workforce – in actual fact at year end Senator had 978 employees compared with 1,007 at the end of 2010.
