PROMISE OF GROWTH AT WEST FIRM
DEVON engineering and property company Rotolok (Holdings) Ltd has seen profits fall by nearly £1million after the Covid pandemic shut down its star-studded Caribbean resort.
The Tiverton-headquartered business saw its manufacturing and engineering division up turnover by more than £3.5million, but its property, hotel and investment arm watched earnings slide by more than £1million.
This was partly attributed to the enforced closure of the Sugar Ridge resort when the Antigua and Barbuda Government declared a Covidrelated “state of emergency” in March 2020.
The 60-bedroom boutique hotel has attracted stars of the magnitude of Mariah Carey and Harry Potter actor Daniel Radcliffe.
It had still not reopened when the annual report and consolidated financial statements were written a year later.
And the report said: “Tourism numbers to the island are principally from the UK and US and until international travel returns, we are likely to remain closed.”
This, the report said, damaged overall group results, for the finan
cial year to the end of May 2020, which otherwise were described as “good”.
They revealed manufacturing and engineering turnover rose to £23.19milion, from £19.45m in 2019, a 20% hike, while property, hotel and investment turnover was at £3.6millon, a dip from 2019’s £4.95m. This meant sales were still up from £24.41m to £26.84m, and the firm posted a before-tax profit of £1.37m, though this was down from 2019’s £2.21m.
Rotolok is still run by Ann McCauley, widow of ex-Plymouth Argyle chairman and Rotolok founder Dan McCauley, and managing director Sean Swales.
The company, which also holds shares in key Plymouth waterfront development company Sutton Harbour Group Ltd, is primarily an engineering firm and stressed its industrial equipment played a vital role in maintaining supply chains for the food processing, chemical and pharmaceutical sectors during the pandemic year.
The company continued to operate, with some staff working from home, and its overseas divisions in the USA, France and India “all did well” in 2020.
It was also helped by “new high water-mark” valve sales from its 100%-owned subsidiary Roots Systems Ltd, based in Gloucestershire.
The company said the start of 2020/2021 has been busy and it has traded well in its new financial year Mr Swales warned: “We feel the second half of the year is likely to be more difficult as global economies and businesses continue to struggle with the impact of coronavirus.
“That said, we remain in a good place and ready to exploit the opportunities as the recovery occurs.”
He said Rotolok was “weathering the storm well and we remain in a fortunate position” despite the effect the pandemic has had on the global population and economies.
Mr Swales said Rotolok has suffered some “minor shipping difficulties” with the EU since the Brexit deal was agreed.
But he also stressed: “We expect to quickly overcome a few export teething problems as we all become familiar with all the new regulations.”
He said exchange rate risk is mitigated, in part, by having facilities in key overseas territories.