An ongoing focus on improving margins and reducing costs has helped Dundee wholesaler and food retail distribution firm CJ Lang & Son to improve full-year profitability.
New accounts posted at Companies House show the Longtown Road-headquartered firm generated pre-tax profits of £1.26 million in the financial year to April 30 2015, an improvement on 2014’s £1.12m return.
Turnover also lifted in the period from £194.7m to £196m.
The company employs more than 2,000 staff, more than 1,700 of whom are employed in its SPAR retail store estate.
The remaining staff are involved in the management and administration of the business and in the food distribution operation.
In his strategic report, managing director Scott Malcolm said the company remained in good health.
“Against a backdrop of challenging and competitive trading conditions in both the retail and wholesale sectors in which the group operates, satisfactory increases in the key measures of turnover, profit before tax and EBITDA were achieved,” he said.
“In line with expectations, considerable financial benefits were derived from the strategic investments made over the last two years in improving distribution and energy efficiency.
“Furthermore,a significant number of our stores underwent development to create food to go offerings and increase the provision of post office services.
“Additionally, we were able to report slight growth in the number of independent SPAR stores supplied and continued expansion of the owned store estate.
“A number of store and property acquisitions were made which resulted in a modest increase in net debt, but the balance sheet remains strong.”
The firm completed a five-year refinancing exercise in the period and Mr Malcolm said the firm was focusing strongly on costs.
He said: “Our strategy continues to be focused on developing the SPAR business in Scotland through increasing store numbers and investment in new initiatives to increase footfall, turnover and margins, whilst at the same time striving to reduce costs where possible, this latter point becoming increasingly important in the light of the National Living Wage being introduced from April 2016.”
The company’s ultimate controlling party is chairman Joan Scott-Adie, who holds 51.1% of the issued share capital.
Other members of the Scott-Adie family control a further 47.6% of the company’s stock.
Dividends totalling £552,860 were paid during the year to Mrs Scott-Adie and the other family directors.