Fancy dress and party products company Smiffys has reported an 80% increase in profits for the year ending 31 December 2016.
The Lincolnshire-based firm, which has been trading for 122 years, reported profits of £3.4million for the period – up from £1.8m in 2015, despite a small drop in turnover (£54.2m, from £56m). The firm’s latest accounts say that it employed 233 people at the end of 2016.
Chairman Raymond Peckett made a statement in the official accounts, which read: “Our revenue channels continue to evolve and change, keeping us at the front of the market.”
“The whole Smiffys team worked incredibly hard in 2016, and I think them all; it’s our ONE TEAM outlook and ‘can-do’ attitude that keeps us at the front of our sector.”
Director Dominique Peckett tells PartyWorldwide.net: “The year-end financial results of 2016, the year Britain returned a vote to leave the EU, gave us a stable platform from which to plan for what we foresaw as being an increasingly unpredictable trading period for the following three years.”
“Since then,” she continues, “we have experienced an increasingly challenging market environment coupled with the devaluation of Sterling against every major currency. Consumers and businesses alike are now really starting to feel the negative impact this is having on the economy with the increasing cost of goods, as rising inflation rate indicates.”
To combat this we have embarked on a programme to cut costs, and are continually assessing our options with regards to our supplier base and distribution model, to ensure we deliver value for money. We don’t see this challenge receding in the foreseeable future, as there appears to be no clear strategy from the Government on what ‘Brexit’ will look like.”
Smiffys made national headlines last year, announcing that it was considering relocating to the Netherlands following the Brexit referendum result.
Some 40% of Smiffys sales go to the European Union and managing director Elliott Peckett said the move woud be an act of prudence following the company’s concerns over the costs of a hard Brexit.
