A Dundee manufacturer has reported an operating loss after being forced to abort a major IT upgrade.
Newly published accounts show JTC Furniture Group fell into the red in 2016 despite improved sales.
The company manufactures and designs a range of furniture for use in a variety of domestic and business environments.
Documents show revenues lifted from £18.94 million to £19.39m in the year to December 31, but the company went from a six-figure profit to a pre-tax loss of £259,636 in the year.
In his report to the accounts, joint managing director Gordon Linton pointed to problems with a major IT project as being key to the outcome.
“2016 was a challenging year,” Mr Linton said.
“The implementation of a new IT system with associated changes to processes and procedures proved operationally problematic resulting in a significant reduction in margin creating an operating loss.
“This resulted in a restructure to the senior management team mid year and reverting back to tried and trusted processes to get the business back on track and profit generating in the later part of the year, which in turn significantly reduced the level of loss reported in the year.
“This has allowed the group to run profitably into 2017.
“The financial resources available are suitable for the group’s needs.”
The group is based within the former Timex factory at Camperdown Works in Harrison Road.
It also has also has a secondary manufacturing unit within the Manhattan Works complex at Dundonald Street.
In 2016, the group carried an average of 256 employees, with 163 involved in the joinery manufacturing process and the remainder in sales and administration.
The group remains within the control of the founding Chalmers family, who set up the business in 1986.