Investments dent Galaxy Optical’s profits
GALAXY Optical Services, the North West supplier and partner to retail giant Tesco’s opticians business, saw its profits drop after investing in systems and new staff.
The Altrincham-based company described the results for the year to the end of November 2011 as satisfactory and “in line with forecast” as profits fell from £2.4m to £1.3m. Turnover was flat at £40.8m.
While gross profitd were slightly up on 2010 to £8.6m, a £1.4m increase in adminstrative expenses to £7.4m hit the bottom line.
Accounts filed at Companies House reveal Galaxy’s workforce increased by around 13% in the year from 218 to 250, pushing up staff costs by £700,000 to £6.8m.
Director and secretary Jocelyn Morgan said: “During the year the company delivered increased financial support to Tesco whilst maintaining steady levels of sales and gross profitability.
“Overheads increased as the company establishes a support network to underpin the potentual growing international requirements of Tesco, especially in the Asia Pacific region.
“In addition the company made a significant investment in the development of an enhanced operating system for the Tesco Opticians stores worldwide as part of its commitment to supporting the evolution of Tesco Opticians.”
She said further investments would be made this financial year in manufacturing and IT to help boost growth and improve business processes.
Galaxy Optical Services, which was founded in 1998, carries out a range of services for Tesco, ranging from in-store design and installation to the exclusive manufacture of spectacles and the recruitment of trained optometrists.
