HOTEL laundry and linen specialist Fishers Services has posted a fall in annual turnover and profits, citing its decision to withdraw from some tenders in which price levels were too low.
Fishers, which provides linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceuticals sectors, said its turnover had fallen to £34.8 million in the year to December 31, 2014, from £35.8m in the prior 12 months.
Operating profits at Fishers Services, which is based at Cupar in Fife, fell to £4.4m in 2014 from £5.3m in the previous year.
Fishers Services said that the fall in profits reflected “reduced revenues, continued investment in plant and machinery and additional transportation costs associated with some new business”.
Explaining the fall in revenues, Fishers Services said it had opted to “withdraw from some tenders where price levels were insufficient to maintain...standards of service and investment”.
However, it highlighted renewed growth in revenues this year.
Fishers Services said that, in response to changing market conditions, it had implemented a new structure to reduce central costs, while protecting front-line service.
It added that this strategy was generating improved performance, and that it had seen year-on-year revenue growth of five per cent in 2015.
Michael Jones, managing director of Fishers, said: “At Fishers, we are proud of our high service standards and we took the decision not to compromise on these, which created a slight fall in revenues in 2014. I am confident that our strategy is the right one, and we are already seeing a return to growth in 2015.”
The firm’s ultimate parent company, Fishers Topco, reported a pre-tax loss of £134,131 for 2014, after interest expenses and similar charges totalling £2.88m.
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