Creightons, in Peterborough, announces fall in profits

The consumer goods company, based in Lincoln Road, Peterborough, makes skincare, haircare and wellbeing products.  

It said pretax profit in the year ended March 31 fell 8 per cent to £687,000 from £3.5m a year prior. 

This partly attributed to distribution costs increasing by 10 per cent to £3.9m, which was driven by increased operational charges at third-party logistics providers and a full year impact of recently integrated acquisitions.  

Also, administrative expenses increased by 3.3 per cent to £18.9m due to a general rise in overhead costs, in particular in energy prices and insurance costs, Creightons explained. 

Revenue was down 4.2 per cent to £58.6m from £61.2m the year before.  

Creightons attributed this to a 12 per cent decrease in private label sales to £22m, due mainly to the non-recurrence of a one-off private contract in the previous year.  

Creightons added that contract manufacturing sales fell by 13 per cent to 13.8m. 

Creightons declared no final dividend, unchanged from the previous year. 

Looking ahead, the company said despite a "challenging year", it is on the "right track", having focused on restoring profit and maintaining a positive cash flow through reducing its cost base.  

It is well-placed to "proactively manage new challenges and take advantage of any new opportunities that may arise", it believes. 

Chair William McIlroy said: "This represented among the most challenging trading years ever faced by the group due to the supply chain and inflationary pressures from the global economic downturn. 

"I am pleased to report that we have responded to these challenges and made excellent progress in the second half of the year in returning the business to profitability and positive cash flow. 

Our branded business, boosted by the acquisitions in the previous year, has grown to almost £23m." 

Shares in Creightons were down 3.2 per cent at 30.00 pence each in London this morning (Friday).