Lincat reports ‘exceptionally challenging’ trading

2008 sales increased from £34.5million to £34.7million while pre-tax profit was up from £5.1 million to £5.2 million. Chairman Martin Craddock said trading conditions continued to be exceptionally challenging, with sales down 18% in the first two months of the year. “We see little prospect of an early recovery in demand and have therefore put in place measures to both reduce our operating costs and to stimulate demand through pricing and value incentives offered to our dealers and end customers,” he said. The outstanding result this year was delivered by the cooking range brand Britannia (pictured), following the completion of a £1million public sector contract. Having moved in December 2007 from its former rented premises in Southam, Warwickshire, to refurbished freehold premises in nearby Leamington Spa, during 2008 Britannia grew its sales by 40%. Lincat said it continued to upgrade its manufacturing plant where an economic case could be made to do so and this continued to deliver cost advantages in each of the group's factories. Chief executive Paul Bouscarle said it would remain the group's policy to invest in the future. “Important new products will be launched during 2009 and it is our intention to maintain investment in research and development at current levels,” he said. “Our higher than average operating margins, strong cash generation and minimal gearing give the group a significant commercial advantage during a downturn that could well threaten the survival of weaker competitors.”