(Alliance News) - FW Thorpe PLC on Thursday said material inflation showed signs of inflation as it touted a successful financial year that performed well despite inflationary cost pressures.
The Worcestershire-based lighting systems firm said pretax profit in the financial year to June 30 rose 12% to GBP26.9 million from GBP24.1 million a year prior. Revenue climbed 23% to GBP176.7 million from GBP143.7 million. Cost of sales increased 23% to GBP98.9 million from GBP80.4 million, while administrative costs increased 33% to GBP31.3 million from GBP23.5 million.
Chair and joint Chief Executive Officer Mike Allcock said: "Group companies' service levels have returned to being good, and the order book and forecast situation is generally fine. Whilst material inflation is showing signs of slowing or even reversing, wage and salary inflation remains high."
FW Thorpe declared a final dividend of 4.84 pence per share, up 5% from 4.61p a year ago. This brings the total dividend to 6.46p, 5.0% higher than 6.15p paid for financial 2022.
Looking ahead, the company said outlook from the sales teams is positive, but added that orders are slightly lower than a year ago. Chair Allcock said: "There is some evidence of projects slowing. Costs are under control and some margin improvements have been made, which will provide an improved return on sales. Revenues, however, are expected to see slower growth than in the recent few years."
FW Thorpe shares were 2.9% lower at 376.63 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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