Partner Article

Atkinson avoids pitfalls of recession

COST-CUTTING measures taken early last year have helped a Teesside builders merchants and property firm avoid the worst of the recession and achieve a 50% climb in annual profits.

Middlesbrough-headquartered Atkinson Northern Limited saw its profits after tax jump from £826,288 to £1.25m in the year ending December 31 2009.

Meanwhile, the firm recorded annual turnover of £23.4m compared to £23.6 in the same period in 2008.

The company said the proportion of staff costs to gross margin were reduced during the year, while its Appleby and Hawes branches were relocated to larger premises in the final quarter.

A statement said: “The board will continue to invest the group’s capital to achieve a stable and sustainable return for shareholders by steadily improving the builders merchant business and wherever possible acquiring good quality freehold property.

“The major risk facing the group continues to be the health of the housing and associated markets in the commercial property market.

“In addition in 2010, the group’s largest tenant has the right to exercise various break clauses in respect of a number of leases which could result in a sharp reduction in rental income. The builder’s merchant business will have the opportunity of significant expansion, but with the risk of low demand in a subdued market.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .