An audio equipment manufacturer has increased its stock levels to deal with possible delays after the UK leaves the European Union .
Washington’s Canford Audio has upped its stock by 15.9% in case Brexit causes disruptions within its supply chain.
The company, which makes high quality audio equipment, took the decision after conduction an internal “Brexit risks review” to gauge the potential impact the withdrawal could have on its business.
While Canford said its experience of exporting to non-EU countries would stand it in good stead after Brexit, it added that it has taken a number of measures including the “acquisition of strategic stocks and discussions with logistics suppliers” to better prepare.
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Canford will also use its French subsidiary, Canford Audio SARL, to continue to have access to the European market.
The firm revealed its Brexit planning at the same time as releasing its financial accounts for the year ending October 31 2018, during which turnover at the firm fell from £16.2m to £15.4m.
Revenue was hit by the company’s decision to close its Ash Distribution arm, which sold products to trade suppliers. Staff working at Ash Distribution were redeployed to other parts of the business, and the firm’s headcount fell by just one last year.
Despite the closure, Canford reported recording breaking profit figures, with operating profit more than doubling from £319,000 to £790,000. Profit after tax jumped from £265,000 to £641,000.
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Commenting in the company’s strategic report, chairman John Francis said: “Canford’s own brands are an important source of sales growth, with continuing high demand for both standard products and custom variations.
“We have gained an international reputation for producing extremely high-quality metalwork, which is now specified for audio and video connection points in many of the highest profile sports stadiums in the Middle East.
“We have succeeded in growing sales margins within a competitive market so that profitability has improved despite the loss of Ash Distribution turnover.
“The directors are proud to report that the year ended 31st October 2018 was the group’s most profitable year to date, with profits more than double the amount achieved in the previous year. We express our thanks to our loyal staff, customers and suppliers for this achievement.”
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