FERGUSSON Coal, Scotland's biggest distributor of solid fuel, will suffer a sharp fall in income this year after losing a lucrative contract to supply concessionary coal to retired miners on behalf of the department of trade and industry.
The family-owned company expects profits to remain healthy, however, after acquiring the businesses of small retail merchants - mainly sole traders dotted across northern Scotland.
Stirling-based Fergusson, which employs more than 100 people, is a third-generation family firm run by Tom and Alan Fergusson, grandsons of the founder.
A 40-strong fleet of Fergusson vehicles distributes 600,000 tonnes of coal a year from
five depots, including Perth/ Dundee, Inverness, Fort William, and Uist in the Outer Hebrides.
Fergusson imports coal through port operator Clydeport's Hunterston terminal on the Ayrshire coast. In the year to March 31, 2003, the firm saw pre-tax profits decline by 25%, to (pounds) 703,000, on sales which were flat at (pounds) 45.1m.
About (pounds) 12m of Fergusson's revenues came through a joint venture with two English firms to distribute concessionary coal. The firm lost this contract to nationwide distribution giant CPL before the end of the financial year.
John Buchanan, finance director, said the setback would slash revenues sharply in the year to March 31, 2004. However, he added: ''Six months before the end of 2002-03 we knew the contract was gone, so we began refocusing on our depot infrastructure and buying up businesses. We have tried to maintain profitability by moving into the retail market and expect to maintain profits at about (pounds) 700,000 this year.''
Boardroom pay at Fergusson rose 7% in 2003, to (pounds) 469,000. The highest-paid director, assumed to be managing director Tom Fergusson, received (pounds) 123,000, a 24% increase.
The Fergussons also took (pounds) 200,000 in dividends, up from (pounds) 120,000 in 2002.
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