A shed and garden buildings manufacturer has pointed to a £2 million factory investment and a growing research division as it posted a major increase in profits.
Kybotech, based in Nottinghamshire, has almost doubled its profits from £1.1 million to £2.1m in the last year, while turnover also jumped up to £22.6 million from 20.6m.
The firm, which is headquartered in Worksop and sells products through two websites, has invested in training and equipment and has grown its portfolio of products to include log cabins, garden offices and playhouses.
It secured a £400,000 grant which went towards a £2 million investment in wood cutting machinery which will enable the firm to manufacture a wider range of cabins. A further £400,000 has also been invested in technology, equipment and training to run machinery.
Manufacturing capacity has also increased, with sales increasing by 55% since the products were launched on site.
A statement from the board said: "The management team have been working hard to deliver better quality products at market leading prices through a mixture of manufacturing site development and R&D.
"Despite the tough trading conditions, turnover has increased by 10 per cent and margins by 15 per cent.
"A strategy of focusing on the development of customer channels that deliver better margins has been a key focus of the management team this year.
"Continuous improvements in manufacturing and fulfilment operations combined with the gains made due to the strong top down R&D culture have seen margins increase from 20.81 per cent to 23.59 per cent.
"These strategies have enabled the group to enhance its market leading position and offer customers a better quality product with more choices at a better value.
"Part of this strategy has been to invest in more advanced technology within manufacturing and the group spent £930,000 on new plant and equipment during the year."
Kybotech employs more than 220 people globally. There are currently more than 800 buildings in its range which are shipped to customers across the UK.
Founder Charles Walton added: “We’re expecting the popularity of log cabins to continue to grow over the coming years and because we anticipated the trend, we’re ahead of our biggest manufacturing competitors.”
