H GROSSMAN, the Rutherglen-based toy maker, has reported a huge leap in revenue despite challenging conditions.
New accounts show the company, which has cashed in on past crazes such as loom bands and fidget spinners, turned over £10.7 million in the year ended December 31 – up more than 70 per cent on the year before.
The accounts represent its first full year of trading since Martin Grossman bought back the business, which was founded by his parents in 1946, in March 2016. That came just nine months after he had sold a majority stake in H Grossman to Mark Walls and Daniel McLoughlin in a management buyout in June 2015. Mr Walls and Mr McLoughlin had also acquired a majority stake in a sister operation in Hong Kong.
READ MORE: Grossman vows to restore growth to toy maker
The latest accounts for H Grossman, which supplies toys and children’s sports items to retailers, wholesaler, mail order and internet companies, in the UK and Europe, show that it made a profit before tax of £903,850 last year. It had made profits of more than £3m in 2016, however its accounts for that year show that it booked income of £3.4m from fixed asset investments, which related to dividends received from a subsidiary company.
Writing in the accounts, director Glyn Loveday said H Grossman has “always been at the forefront of toy innovation and is always looking for the latest toy trends”. Mr Loveday noted: “The company’s large and diverse customer base allows it to capitalise on these trends as they arise. The company achieved a good level of turnover and profitability for the year to 31 December 2017, despite challenging trading conditions.”
The accounts show average numbers were unchanged at 37. Payroll costs dipped to £890,322 from £948,653, with directors’ remuneration falling to £78,071 from £111,929.
Mr Grossman could not be reached for comment yesterday.
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