Fife headquartered industrial laundry firm Fishers Services saw profits surge in its first full year of ownership under new ownership.
The Cupar-based firm was sold to Canadian laundry giant K-Bro in a £35 million deal in 2017.
Newly filed annual accounts show pre-tax profits leapt from £1.8 million in 2017 to £3.3m for the year ending December 31 2018, an increase of 86%.
Revenue showed more modest growth of 2.4% from £33.6m in 2017 to £34.4m last year.
Michael Jones, managing director of Fishers, said: “2018 saw the company return to reporting normal levels of profitability after a number of one-off costs and changes in accounting policies which impacted the previous year.
“This was also Fishers’ first full year under K-Bro’s ownership and we made a number of investments in the business that we expect to bear fruit going forward.”
The Fishers deal was the first acquisition by K-Bro outside of Canada.
At the time K-Bro said it planned to leverage its acquisition of Fishers as a platform from which to build its presence in the UK commercial laundry and textile rental market through a combination of organic growth and consolidation opportunities.
The firm employs more than 700 people across its seven sites in Scotland and northern England, including a plant at Inveralmond Industrial Estate in Perth.
“We are proud of our role in servicing the Scottish hospitality sector, and other markets, from our head office here in Cupar,” Mr Jones added.
“Along with many other hospitality-focused businesses, we face challenges going forward and we look forward to continuing to play an important part in Scotland’s tourism industry and, with the support of our parent company, we will continue seek out opportunities for further growth.”
Staffing levels fell slightly over the period from 741 to 726, with 653 employed in operational roles and 73 staff in administration and sales.
The company’s annual report highlighted a number of areas of risks, including the general performance of the UK economy which can impact hotel occupancy levels.
In 2017, the firm entered into a knowledge transfer partnership with Strathclyde University using technology to track stock levels.
The company was established in 1900 and is one of the largest laundry firms in the UK, servicing clients in the hospitality, industrial, science and healthcare sectors.
jimillar@thecourier.co.uk