Independent builders merchant chain Joseph Parr Group increased profits by 79% in 2009, despite a fall in turnover.
The firm, which is based in Liverpool but has nine branches across the north saw sales fall from £45.2m to £35.6m, but operating profits were £1.44m, a 79% rise on the 2008 figure. Pre-tax profits rose from £972,090 in 2008 to £1.53m in the year to December 31 2009.
Employee numbers were reduced during the year in the wake of the downturn, falling from 217 to 186, which reduced the company’s employment costs by £1.6m to £5.4m.
Owned by Robert Lomas, Joseph Parr Group’s headquarters is in Bootle, the location of one of its four North West branches. It has two sites in the North East, two in Scotland and one in Stoke on Trent.
The directors said: “The decrease in turnover in the year was a reflection of the general economic environment, however the group managed to maintain its gross margin in the difficult trading environment.”
Looking ahead , the group believes that the cost reductions which have taken place which will allow the group to be in a stronger position to maintain its market share and move forward during the economic recovery.
The accounts show that a £1m interim dividend was paid during the year.