LONDON (Alliance News) - Investment company CEPS PLC on Tuesday said its pretax profit rose slightly in 2015, despite taking a hit from an exceptional charge coming from the required accounting treatment in relation to its increased stake in CEM Press during the year.
CEPS reported a GBP256,000 pretax profit for the year ended December 31, from GBP245,000 a year earlier, but noted that this would have been GBP394,000 in 2015 were it not for a GBP138,000 exceptional charge. The group's revenue rose to GBP18.2 million from GBP17.0 million.
However CEPS said its post-tax profit was down at GBP57,000 from GBP251,000 a year earlier due to a significant tax charge of GBP199,000. In 2014, a deferred tax adjustment meant CEPS posted a GBP6,000 tax credit.
CEPS has an interest in six companies. CEPS said it was continuing to look at ways to expand its trophy and award manufacturer Aford Awards business organically and by acquisition in 2016, and added that the creation of a new showroom and investment in a new engraving machine will improve sales and manufacturing capacity.
At the fabric, wallpaper and carpet sample book manufacturer CEM Press, CEPS said a number of projects are now underway aimed at improving efficiency and quality. CEPS increased its stake in this investment to 71.5% in September from 21.4%, and said on Tuesday that during the "brief period of majority ownership, improvements in operational efficiencies are beginning to be evident".
Trading at Davies Odell, a manufacturer of body armour, matting products and footwear repair products, continued to be difficult, CEPS said, and eight people were made redundant at this business during 2015. However, CEPS said progress was now being made at this company.
Textile importer, converter and distributor of plain and bespoke Lycra based material Friedman's had an "excellent 2015" and CEPS expects this to continue in 2016, notwithstanding the impact of a weakening pound.
Packaging and mail provider Sunline moved back into profit in 2015, and CEPS said the focus in 2016 will be on fine-tuning the labour costs.
CEPS noted that it acquired independent provider of specialist clerk of works services Hickton Consultants after the end of the financial year in February and said it has traded well so far, with Hickton expected to make a "good contribution" in 2016.
"Underlying trading in the group companies is improving. Steps have been taken in all of the subsidiaries to promote further development and, once the uncertainty caused by the European Union Referendum is removed, one way or the other, we believe our companies will continue to make progress," said Chairman David Horner.
"Trading in the year to date is in line with the board's expectations. Whilst there is currently great uncertainty at the macro level in the UK economy, our companies are working hard to make multiple small improvements in their trading. We expect the group to make further significant progress as the year unfolds," Horner added.
Shares in CEPS were flat at 50.00 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Ceps (CEPS)