Reduced margins and rising distribution costs hit profits
Cash and carry operator JW Gray & Co has reported a small pre-tax loss for the year despite a six per cent rise in revenue.
Accounts filed with Companies House for the Shetland-based business show gross margins dropped to 18.8 per cent in the year to July 31, 2012, against margins of 20.3 per cent the previous year.
Distribution costs also rose 12 per cent to £152,859.
Revenue for the year was £18.7 million, though after cost rises and margin reductions were accounted for the business reported a pre-tax loss of £27,536 against a pre-tax profit of £147,711 the previous year.
The group also increased capital expenditure to £217,304 in the financial year (2011: £64,052) and net debt rose slightly to £1.86 million (2011: £1.61 million).
JW Gray & Co also operates KGQ Hotels Ltd, Thule Bar (Lerwick) Ltd and Shetland Turf Accountants Ltd and the group employs 119 people.