COMPANIES

Big margin jump drives profit hike at £40m Lancs cabinet maker

02.09.2010

Cabinet maker JJO has returned a five fold profits increase to £2.3m before tax in the year to end February. Sales rose by 2.9% to £39.6m.

A 310 basis point climb in the Lancashire based company's gross margin, to 23.4%, was a contributing factor in the profits rise, up from £0.429m in 2009.

Its pre-tax return is its highest in at least five years, although revenues are still £1.5m shy of the £41.2m sales figure it achieved in the year to end February 2008.

JJO makes cabinet furniture for bedrooms, kitchens and bathrooms and sells through retail stockists. The balance sheet value of the company rose 11.8% year on year to £15.1m.