Stannah Stairlifts turnover increases in 2018 but profits fall by over half a million
With over 150 years heritage in the lift market, Stannah Stairlifts Ltd has reported a two percent increase in turnover for the year ended 31 December 2018, however, seen an 11.5 percent decline in overall profit, from £5.2million to £4.6million.
Founded in 1867, Stannah Stairlifts has grown into one of the UK’s leading independent suppliers of stairlifts, working with private customers, trade partners and local authorities across the UK, as well as exporting across the world.
The family-owned British manufacturer of stairlifts reported in its latest annual report that turnover for the period was £86.7million, up two percent from 2017’s £85million.
Despite the increase in turnover, the company revealed that an increase in direct costs led to a reduction in gross profits by £2.5million to £18.5. Subsequently, reported operating profit for the company also declined to £4.7million, down from 2017’s £6.6million.
It was in the UK where Stannah Stairlifts saw the biggest decline in sales of goods, falling 18.7 percent to £23.9 million, a decline of almost £5.5million from 2017’s £29.4million. This reduction in domestic sales was offset however by strong performance in Europe and the rest of the world.
In Europe, the company’s sales grew 13.4 percent, from £44.1million in 2017 to just shy of £50million in the year ended 31 December 2018. In the rest of the world, the company also saw an increase in sales, up 12.2 percent from £11.5million to £12.9million.
Alongside the company’s turnover and profit, Stannah Stairlifts reported an increase in net current assets by 5.9 percent to £15.4million, rising from 2017’s £14.6million.
According to the stairlift manufacturer’s strategic report, the company is closely monitoring Brexit developments and confirmed it “has developed robust plans to ensure that it is well placed to operate effectively based on a range of potential scenarios.”
It also noted the competitive nature of the stairlift industry, stating it is reducing the risk of competitive pressure by focusing on adding value to its service, maintaining a strong brand and investing in the future of the company.
Stannah Stairlifts highlighted that in the year ended 31st December 2018, it invested £5.5million in the research and development of new and existing products, a slight increase from 2017’s £5.3million.
Group profits also dip
Stannah Stairlifts Ltd is part of Stannah Lifts Holdings Ltd, the parent company consisting of a range of different lift and maintenance operations – primarily consisting of passenger, stairlifts and servicing – which all fall under the Stannah Group banner.
In total, the Group’s turnover in the year ended December 2018 increased to £266million, up six percent from 2017’s £251million. The Group’s overall operating profit fell to 0.4 percent of turnover however, down from 2017’s 1.8 percent.
According to the Strategic Report, the fall in operating profit is attributed to reduced gross margin levels as a result of increased direct costs, administration expenses and distribution costs, as well as adverse fair value movements in investments.
Stannah’s joint chairmen and brothers Brian and Alan Stannah in this year’s Sunday Times annual Rich List 2019, with an estimated net worth of £155million.
