Clarkson Coatings Limited

The principal activity of the company during the period was that of textile finishers. Results, performance and developments during the year We are pleased to report a profit before tax for the year of £27,787. After a pre tax loss of £579,272 in 2023 the company has successfully upgraded the operational activities, invested in machinery, implemented new quality assurance policies, and redeveloped staff recruitment and training. Turnover has increased 8% to £7.17m, this is despite a significant fall in sales from some large historic customers who have lost product placements into major UK retailers. Principal risks and uncertainties The Directors consider that the key risks and principal uncertainties faced by the Company are: Raw material price volatility Fluctuation in energy costs Labour market disruption These risks are managed through monitoring of the appropriate markets, maintaining close supplier relationships and multiple sourcing of key resources. Financial instruments Due to the nature of the financial instruments used by the company there is no material exposure to price risk. The Company's approach to managing other risk applicable to the financial instruments concerned are shown below. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of short term invoice finance facilities. Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Key performance indicators Key performance indicators monitored by management include order in-take, gross margin, processing efficiency and cash collection. Outlook Costs remain unstable due to global chemical compound price instability, coupled with increases in salaries and operational overheads. After all the hard work undertaken, Clarkson's is well placed to tackle these challenges and remain in a strong position to support all customers.