CR SMITH has received an out of court settlement to a long-running legal dispute with a supplier, the proceeds of which helped the firm stay in profit amid challenging trading conditions.
In the latest accounts for the Dunfermline-based double glazing and conservatory supplier, directors noted a legal action to recover the costs associated with a deficient component had ceased following an out-of-court settlement by the supplier.
The company, owned by Gerard Eadie since 1977, said the amount of the settlement was covered by a confidentality clause.
However, CR Smith said it had recognised £307,626 income in respect of the settlement in the 11 month period ending 28 February 2013.
The company said this was because an element of the settlement was deemed to be reimbursement of costs it had incurred.
CR Smith said it is still incurring rectification costs related to the component, which was used in products made before September 2003.
In the accounts for the year to March 2012 CR Smith said a court case against an unnamed supplier over a deficient components incorporated in products made before September 2003 has been ruled in its favour but a decision on the level of compensation was not expected until October 2013. The firm said it had presented a claim to the supplier for around £17.9m.
The cost reimbursement helped CR Smith achieve a pre-tax profit of £289,593 in the 11 months to February 2013, up from £254,716 in the year to March 2012.
Turnover was £17.3m, or £18.9m on an annualised basis, compared with £18.4m in the preceding year.
Comparisons are complicated by the fact CR Smith sold its manufacturing operation in November 2012 to a company owned by Mr Eadie's family for £640,000, to focus on the installation of windows, doors and conservatories.
The company said the separation of the two businesses will allow greater focus on the opportunities each has. It said further significant investment is planned at the Cowdenbeath manufacturing facility.
Mr Eadie said: "We are pleased with our performance in challenging market conditions."
Directors received total remuneration of £318,248 in the 11 months to February 2013, compared with £330,125 in the preceding 12 months.
The highest paid director received emiluments of £154,233 compared with £157,242.
CR Smith employed an average of 335 people in the 11 months to February, up from 333 the year before.
The company can trace its roots to 1917 when it began as a picture framing shop in Alloa and a glazing workshop in Dunfermline.