By Kristy Dorsey
Profits have more than doubled at family-owned wholesaler JW Filshill as the pandemic drove a surge in local convenience store shopping last year.
The increase in turnover and profits was despite a substantial rise in Covid-related costs across the KeyStore franchise network it owns in Scotland and the north of England, where Filshill had to cover investment in protective gear, screens, distancing signage and so forth. The network covers more than 190 franchised shops.
The company’s international division, which exports alcoholic and non-alcoholic drinks primarily to the Asia-Pacific region, had to suspend much of its activity during the year. Sales into the UK on-trade were also significantly hampered by lockdown restrictions.
Chief operating officer Keith Geddes said the group had to adapt quickly during the year to take account of the “massive disruption”, while also protecting its 210-strong workforce.
READ MORE: 'Steady' year for KeyStore supplier JW Filshill
“There were high costs associated with safeguarding employees and customers but we took all necessary precautions,” Mr Geddes said. “We were one of the first companies in the UK to make regular lateral flow testing available on-site to the entire team.
“Despite these increased operating costs, the change in consumer behaviours resulted in an increase in demand for convenience retail which helped offset those costs and generated funds to invest in the growth and future of the business.”
In accounts lodged with Companies House, Filshill posted a pre-tax profit of £2.2 million for the year to January 31, up from £906,000 the previous year. Turnover was up by 23% at £191m.
Despite the export constraints on Filshill International, the company completed the acquisition of the Eldorado Tonic Wine brand at the end of last year as part of its purchase of KB Agencies. Chief executive Simon Hannah said this will allow the business to further diversify by getting involved in developing brands.
“We also revisited our overall company strategy during the year and created a 10-year strategy, built by all employees, to provide focus and clarity of direction for the business going forward,” Mr Hannah said.
“Our long-term strategy of building strong partnership-based relationships with our customers and suppliers has been critical in us providing essential supplies to communities across the country in challenging times. We were recently ranked number one by suppliers in an independent survey across our key competitors for the ninth consecutive year.”
He added that directors are pleased with current performance and “confident that profits will continue at a satisfactory level”.
Filshill is due to relocate to a purpose-built 120,400sq ft distribution centre near Glasgow Airport early next year. The facility will include 10,000sq ft for head office functions.
The company said it is creating a strategy for benchmarking its carbon footprint and is also engaging with workers on health and wellbeing, with a particular focus on mental health.
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