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Warehouse and food distribution construction specialists Chalcroft see profits rise

A focus on niche markets and smaller jobs with higher margins has helped boost profitability at warehouse and food manufacturing construction specialist Chalcroft.

The company, based in Pershore, West Midlands, and King’s Lynn, Norfolk, has recorded a small rise in pre-tax profits for the 2009/2010 financial year.

The increase, up to £427,686 from £422,144 for 2008/9, comes at the same time as a predicted drop in turnover, from £40,377,813 to £32,130,103, over the same period.

Managing director Mark Reeve commented: "When we were forecasting, we took the view that even though our turnover would decrease, we would take on smaller value projects with higher margins, and therefore increase profitability.

"We have been able to focus on jobs in niche markets, interspersed with projects around the £4m mark, and have found that our reputation and experience have helped us secure work in an increasingly competitive market.

And he added: "We believe we are better prepared than most as we haven’t shed resources, as many have done. Niche markets have supported us through the recession of the past couple of years and I am confident that this will continue for the foreseeable future."

Chalcroft has also been able to build its cash reserves, while at the same time it has invested heavily in new IT and CRM systems.

While much of its work is in the warehousing and distribution sectors, particularly for food manufacturers such as Premier Foods, Coca-Cola Enterprises, Nestle and Bakkavor, Chalcroft also boasts a specialist division that carries out projects for clients in the telecommunications, renewables and utilities sectors.

The company has also recently been awarded a Silver accolade by the Royal Society for the Prevention of Accidents (RoSPA).

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