Kilmarnock, Scotland, May 6--Troubled carpet manufacturer Stoddard International has had a tough year, but bosses say ‘a much leaner business’ has been created in Kilmarnock, according to icAyrshire.co.uk.
Underlying annual losses doubled from £3.1 million to £6.2 million. And as it filed its 2003 results on the last day available to comply with stock market rules, the company’s chief executive Alan Lawson confirmed ‘disappointing’ results with sales seven percent down on 2002 at £30 million.
Stoddard has consolidated production from three factories to the single site at Riverside Mill in Kilmarnock, but the ‘extensive and ambitious’ move cost around £10 million.
The firm now employs 503 people, but as well as closing its pension scheme to new members, Stoddard’s has shut the scheme to new contributions from existing employees. The final salary pension scheme is heavily in the red, but it is not being wound up.
The dire figures for the year to December 31 saw the company attributing the rise in losses mainly to an £800,000 reduction in operating profit margins and the £2.3m increase in pension fees.
Stoddard’s net debt, much of which comprises a bank overdraft, went up from £12.6 million to £17.4 million last year, but they say this will be reduced substantially as around £15 million of proceeds from the disposal of properties comes in this year.
In Kilmarnock this will include the third tranche of £2.8 million from Safeway for the Mill Street site, due to be paid in a few weeks’ time.
Morrisons were left to pick up the tab after Safeway’s takeover--and have said privately that they will honor the Kilmarnock commitment.
