Kitchen maker forging ahead
YORKSHIRE kitchen manufacturer Omega said it is on track to double the size of the business after reporting a strong set of results despite a challenging market.
The firm, based in Thorne, near Doncaster, said it had exceeded its own expectations “during a period which some in the industry continued to regard as testing”.
Omega saw pre-tax profits increase 27% to £8.1m from £6.4m in 2006. Turnover was up 19% to £33.7m from £28.3m last time. The group remains debt free.
It said it had been able to negate the impact of rising interest rates, energy and material prices by “re-sourcing and by generating incremental business”.
The group supplies three brands of high-quality kitchens – the fitted Sheraton range and the flat-packed Omega and Chippendale brands which are sold throughout the UK, mainly to independent retailers.
Omega also announced plans to extend its site at Doncaster.
The AIM-listed group said it had purchased land adjacent to its existing site which would increase the total site area to 21 acres and provide further expansion opportunities for the company with plans to potentially increase the factory by an additional 95,000 sq ft.
The group said that flooding in the area remained a concern but that it had taken ” appropriate measures to mitigate these risks.”
Omega plans to extend its kitchen ranges throughout 2008 – adding 13 new kitchens to the Sheraton brand in April. The Omega and Chippendale brands will each see a further five kitchens being added in June.
It said it would be raising prices by 5% across its brands but added that the rises were lower than its major competitors making its kitchens a more attractive proposition to buyers.
Chief executive Francis Galvin said: “The group enters the new financial year with continued confidence and optimism, despite the current economic uncertainty, having laid the foundations for enhanced growth in volumes, quality and margins. The future is positive and exciting.”
Omega, which was floated on the Alternative Investment Market (AIM) in 2004, was founded by former Sunderland soccer club chairman Bob Murray in 1994.
Mr Murray said:”Omega has had another excellent year in all respects and I am delighted to be reporting these strong results today.
“During 2007 we have focused on ensuring we have the right infrastructure in place to double the size of the business by 2010. The third phase extension to our freehold factory is now completed and this investment, along with our continued strong financial performance, is a solid foundation for achieving this target.”
Omega employs 260 people.
