The Courier & Advertiser (Fife Edition)
CR Smith models its worst-case scenario
Fife-based home improvement firm CR Smith will not accept any government support if there is another full lockdown.
The Dunfermline-based company has modelled a “worst-case scenario” on its finances where trading grinds to a halt but employees and other costs still have to be paid.
Running the forecast out to August 2022, the major Fife employer has determined it would be able to cover its expenditure with cash available and no further government assistance.
Director George Eadie said: “Having taken an innovative approach towards our ongoing operations, particularly through digital adoption, we believe that even if there should be a second full lockdown, the company is in a position to continue to fund its activities for an extended period, with no further government support.”
While keen to underline its robust balance sheet, the company anticipates a much better outcome than a doomsday scenario.
The company’s financial year runs to the end of August – sales and profits rose in 2019 and were on course for further growth in 2020 until all revenue generating activity ceased at the end of March.
Workers were furloughed and all discretionary expenditure was eliminated during lockdown.
CR Smith has been encouraged by trading since it resumed operations in July, quickly returning to profitability and seeing increased inquiries for customers looking to extend their homes.
Meanwhile FIX, the company’s repair business, had seen a 23% uplift, primarily from customers of companies that have gone bust.
It expects to see a return to pre- Covid le vels of trading in 2021 and further growth in 2022.
Recently filed accounts, for the year ending August 31 2019, showed revenues at CR Smith Glaziers (Dunfermline) Ltd, which encompasses the firm’s domest ic sa les and installations operation, rose by £4 0 0 , 0 0 0 to £ 23. 9 million. Pre- tax profits edged up from £134,000 to £138,000.
Meanwhile, revenues for the firm’s commercial arm, CR Smith Manufacturing Limited, jumped by almost £2m to £10.8m at the end of the financial year, with profits of £101,000.
Mr Eadie said: “These accounts reflect another good year of trading.
“Much has happened since then, but the figures repor ted show the underlying strength of CR Smith and the reason why we have been resilient to the challenges created by the pandemic.
“Having ceased all operations during lockdown from March through to July 2020, we are again trading successfully, and have since returned to profitability.
“Based on robust modelling, we expect to see a re turn to pre- Covid turnover levels in 2021 and anticipate further growth in 2022.”
CR Smith employs around 350 staff in manufacturing, installation, sales and customer service roles.
The CR Smith name has been around for 100 years.
Gerard Eadie, brother of George, purchased the company as a 22-year-old and has led the company for the last 46 years. He now holds the post of executive chairman.