The Courier & Advertiser (Perth and Perthshire Edition)
Group back in profit after IT project challenges
JTC Furniture Group was forced into computer systems rethink
A Dundee manufacturer has reported an operating loss after being forced to abort a major IT upgrade.
Newly published accounts show JTC Furniture Group fell into the red in 2016 despite improved sales.
The company manufactures and designs furniture for domestic and business environments.
Documents show revenues lifted from £18.94 million to £19.39m in the year to December 31, but the company went from a six-figure profit to a pre-tax loss of £259,636 in the year.
In his report to the accounts, joint managing director Gordon Linton pointed to problems with a major IT project as being key to the outcome.
Mr linton said “2016 was a challenging year”, adding: “The implementation of a new IT system with associated changes to processes and procedures proved operationally problematic, resulting in a significant reduction in margin creating an operating loss.
“This resulted in a restructure to the senior management team mid year and reverting back to tried-and-trusted processes to get the business back on track and profit-generating in the later part of the year, which in turn significantly reduced the level of loss reported in the year.
“This has allowed the group to run profitably into 2017.
“The financial resources available are suitable for the group’s needs.”
The group is based in the former Timex factory at Camperdown Works in Harrison Road.
It has a secondary manufacturing unit in the Manhattan Works complex on Dundonald Street.
The group carried an average of 256 employees in 2016, with 163 involved in the joinery manufacturing process and the remainder in sales and administration.
The group remains in the control of the Chalmers family, who founded the business in 1986.