Cupar laundry firm Fishers yesterday told of its hopes for a “big year” in Scotland’s hospitality sector as it revealed a rise in operating profits for the 12 months to December.
The group’s trading arm, Fishers Services Ltd, yesterday filed accounts showing how earnings climbed 2.3% to £5.3 million over the period, as turnover jumped 7.5% to £35.8m.
But the 114-year-old firm which cleans, irons and delivers more than two million items of laundry a week and counts many of Scotland’s most prestigious hotels and restaurants amongst its customers also announced the retirement of managing director Bruce McHardy following two decades of service.
He will be replaced by deputy Michael Jones, who heads the group’s growing workwear and cleanroom business and counts 14 years with Fishers among his 25 years’ of experience in the commercial laundry sector.
A refinancing completed last summer saw existing shareholder Cavendish Square Partners invest a further £5m in the business and a new structure which significantly reduced the wider group’s debt.
It aims to continue efforts to grow operations in the north of England, where it already has a major presence near Newcastle-upon-Tyne.
Fishers’ management said it expected 2014 to prove an important year thanks to events like the Commonwealth Games and Ryder Cup, and added that it was well-placed to capitalise on an uplift in the Scottish hospitality sector.
“We consolidated our position in Scotland during 2013 and made further advances in the north of England linen rental and laundry market, while further growing our workwear and cleanroom businesses,” said Mr McHardy, who leaves the top job after seven years in post.
“The start of 2014 has seen strong competition, but this promises to be a big year for the hospitality sector in Scotland and, as I hand over leadership of the business to Michael, I am confident that Fishers will play a major part in its success for the Scottish hotels, bars and restaurant industry.
Chairman Michael Averill said the retiring boss left a “strong foundation” for future growth.
Reported pre-tax profits reached £5.1m against last year’s figure of £17.8m, which had been artificially-inflated by dividend accrual from other areas of the business.
Last year’s restructure saw the former Fishers Group acquired by new firm, Fishers Topco Ltd.
Earlier this spring, the company revealed how it had invested £4.4m in leasing a new fleet of 57 delivery vehicles.