Record results for thriving safety supplier
ARCO has reported a rise in sales and profits as it announces ambitious future plans.
The Hull-based safety clothing and equipment supplier has revealed record sales for the year ending June 2013, with an increase of 2.5% year on year to £249m. Operating profit is up 7.6% to £11.5m.
Joint managing director, Thomas Martin, says the family-owned business has big plans for its continued growth.
“Our goal is to double the size of the business over the next ten to 12 years,” Martin said.
“We’re a family business, so we can afford to take the long-term view.”
Neil Jowsey, who joined the firm 15 months ago as joint managing director, said Arco will be spending around £6m on investment in a number of areas such as telephony software, investment in the quality of products and web systems, on top of a £0.5m investment in training staff. This summer, Arco will open its Product Assurance Laboratory, which will enable it to test footwear, gloves and hi-vis clothing to levels above current British, European and International standards.
Jowsey said: “This £6m will be a big investment over the next two to three years, with a lot being spent this year.”
“It’s all about continuing to strengthen the business and improve our rate of growth,” Martin added.
“You’ll see us taking innovation out to bluechip FTSE 100 companies.”
The group, founded in 1884, provides safety equipment, personal protection equipment and workwear to major public and private organisations. It was a supplier to the London Olympics and has a contract for this year’s Commonwealth Games.
Arco, which employs almost 1,500 people and exports to more than 160 countries, opened two new branches last year and has sites identified for the coming year. The firm said it expects to open four new sites a year, depending on the opportunities.
Arco said it remains focussed on its long-term strategic plan of growing the business in the South of the country and expanding its e-commerce platform.
The company has also announced the appointment of David Evison as the firm’s new finance director. Much of his career has been spent at Sainsbury and William Jackson Food Group.
Evison said: “I join Arco at a very exciting time for the company and am delighted that in the first weeks of my new role, I am able to report on another successful year. This is something we will build on as the business continues to grow. On behalf of the board of directors, I would like to thank all our colleagues for their continued hard work, enthusiasm and dynamic spirit despite the challenging trading conditions. I look forward to working with the team here to help make work a safer place for everyone.”
