There are no signs of a slowdown at upmarket fitted kitchens company Smallbone.
Profits jumped from £758,000 to £2.62m in 2007. Turnover was 17% ahead at £56m. Excluding Smallbone’s relatively new US business the core group operating margin increased from 4.4% to 8%.
US expansion is yet to bear fruit and Smallbone US lost £1m last year. Orders are building up and the performance should improve this year. The plan is to have seven showrooms in the US by 2010. This includes contracts to supply kitchens for residential developments by Extell Development Company.
Stone flooring business Paris Ceramics returned to profit in 2007.
The final dividend of 1.2p a share brings the total for the year to 1.8p a share, which is 80% higher than 2006.
Six showrooms will be opened this year – including one in New York – against three in 2007. This means that capital spending is likely to be higher than the 2007 figure of £3.5m.
The order book is 14% higher at £32m. Chairman and chief executive Charles Smallbone says that he hasn’t seen any signs of weakening demand although he does add that he believes that the company is taking market share from independents.
The shares rose 4.75p to 118.5p.
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