Safety equipment supplier Arco's profits fall - despite rise in sales
Arco employs around 800 people in Hull and East Yorkshire
By Hull Daily Mail | Posted: 8 Feb 2018
Safety equipment supplier Arco has reported a fall in profits following the end of the last financial year.
The firm, which employs around 800 people in Hull and East Yorkshire, saw a 2.4 per cent increase in sales in the 12 months up to June 2017, but said exchange rate fluctuations and the rising cost of goods had resulted in a reduction in overall operating profit to £9m.
The company, based in Waverley Street in the city centre, invested £30m in a Digital First programme last year in a bid to improve its sustainability.
The sale and leaseback of Arco's national distribution centre was also completed in 2017, releasing funds to create a new facility which will double current capacity.
Planning permission for this has already been granted and building will begin in the coming months.
Thomas Martin, chairman and non-executive director of Arco said: "With tough economic environments comes a lot of uncertainty. However, we have been able to report stable financial figures, with a slight increase in sales.
Chairman Thomas Martin said Arco has a "firm foundation" going forward.
"Although we have seen a reduction in operating profits, our investments to support our growth strategy provide a firm foundation for the business going forward."
The firm, which sells around 200,000 products and has around 48 stores across the UK, says it will continue to focus on "product quality and assurance in its commitment to keeping people safe at work".