Designs inspired by the Scottish countryside helped Dundee textiles manufacturer and distributor Wemyss Fabrics (Holdings) to stay in the black last year.
According to newly published accounts the group which has its registered office at Baltic Works in Dundee’s Annfield Road achieved a pre-tax profit on ordinary activities of £502,688 in the year to November 30.
Despite a marginal uplift in turnover, from £7.79 million in 2011 to £7.82m last year, the pre-tax return was £300,000 down on the £802,723 the firm made in 2011.
Although the cost of sales dropped during the year from £3.5m to £3.38m, the company did incur higher distribution costs last year and also saw its administrative outlay rise by a significant amount.
The group is headed by directors Malcolm Moir and Martin Wigglesworth. It trades under the Wemyss name from a purpose-built warehouse and design and technical studio at Wester Gourdie Industrial Estate.
It also has a London showroom in the exclusive Chelsea Harbour Design Centre.
Wemyss has been working with Natasha Marshall, from Glasgow, who draws her design inspiration from Scotland’s scenery, on its range of fabrics and wallpapers.
Last month it launched five new collections during design week in the UK capital.
The group, which can trace its history to 1947 and has links back to the 19th Century cottage weaving trade in Fife, has been in the same private hands since 1981 and moved to Dundee in 2006.
In their report to the accounts, the directors said the company, which saw its workforce headcount fall from 62 to 55 last year, was looking to achieve long-term growth.
“The group continues to invest in new product lines,” the report stated.
“The directors regard such investment as necessary for the continued success in the medium- to long-term future of the business.
“The group’s activities expose it to a number of financial risks including price risk, credit risk, cash-flow risk and liquidity risk.”
Despite the caution, the directors’ report pointed to reasons for optimism for the future of the company with a 2% uplift in gross margin.
“The group’s sales have increased by 0.5% over the prior year. However, the group’s key measure of effectiveness of its operations is gross profit margin,” the report stated.
“The balance sheet shows the group’s financial position at the year end is, in both assets and cash terms, consistent with the prior year.”