Pre-tax profits double to £32m at health and safety supplier Arco

Health and safety equipment supplier Arco, a fourth generation family business, has seen pre-tax profits more than double to £32.5m.

Profits for the year to June 2016 increased from £15.3m the year before after a £25m sale and leaseback of its premises.

Sales declined slightly by 0.8% to £281m for the year, which the company said was down to a “toughening” in key markets such as the public sector and oil & gas.

In July 2015 Arco acquired Confined Space Training Services for £1.9m, which has contributed £3.2m in turnover since the acquisition, said Arco.

Arco said it had seen increased pressure on sales and margins, which it offset with cost control.

It also completed a sale and leaseback “to release funds for future expansion”.

The company, which employs 1,600, said the funds will allow it to double capacity at its Hull site, with a programme of works due to start during 2017.

It was also listed in the Sunday Times 100 Best Companies to Work for during the year, and announced a major expansion of its Hull distribution site earlier this year. It announced £4m it had invested £4m in the site earlier this year.