Scrap metal group continues investment
SCRAP metal giant CF Booth has continued to invest in its site while extending its product range, despite seeing profits shrink.
Rotherham-based CF Booth employs over 360 people and was established in 1920 by Clarence Frederick Booth. It has been passed down through the generations of the Booth family, including the late former Rotherham United chairman Ken Booth, who died last summer.
CF Booth, which is predominantly focused on metal recycling, announced in its annual results for the year ended March 31 2013, that turnover had dropped by 3.9% to just under £263m as a consequence of lower metal prices. Operating profit fell from £3.8m to £3.1m at the group and pre-tax profits shrunk to £2.7m compared to almost £3.5m in the previous year.
The group, which started life as a local metal trader, said volume was similar to 2012 following the continued recovery in the levels of global demand and the fall in prices reduced the group’s working capital requirement. This, together with cash generated from operations, enabled the group to continue to invest in new plant and reduce net debt. The group’s net debt stood at £23.8m compared to £24.8m in 2012.
The South Yorkshire company said it has had several years of sustained growth in export sales and was awarded the Queen’s Award for Enterprise – International Trade in 2012. The business said exports have been maintained at a high level in 2013, but the weak Euro made sales to Europe less competitive.
The group described its results as “satisfactory” and said it continues to extend its product range and continues to research and develop processes and uses for recycled materials.
In its early days, the company predominantly functioned as a scrap yard, importing and exporting small quantities of a limited number of metals, but is now importing and exporting a variety of materials worldwide. The company manufactures copper based ingots, too, which are sold to companies across the globe. Most recently, the company has begun manufacturing forged parts mainly for use in the marine industry.
The CF Booth group includes CF Booth Engineering, CF Booth Stockholders, Northfield Aluminium, Rotherham Stainless & Nickel Alloys and Demex.
