Viglen sales rise but profits slide


Viglen sales rise but profits slide

Microscope contributor

Viglen's top brass managed to steer the UK system builder to higher sales in fiscal 2009 but were unable to prevent a steep drop in profits.

The Hertfordshire-based firm saw sales rise 9.2% to £53.3m for the twelve months to 30 September as retained profits sank 65% to £748,139.

Management at the public sector supplier - principally education, local and central Government and emerging services - lauded the performance but acknowledged the slide in the bottom line.

"The company had an excellent year, winning many new customers," the firm stated in its director's report.

"Although profitability fell, the company's result in the prior year benefited from the release of deferred income in prior year sales," said the report.

In the course of the fiscal year, Viglen won two substantial contracts; OGC10 is an exclusive two year deal to supply to 48 councils and NHS trusts worth an estimated £26m and OGC11 is for 24 councils in the north worth up to £7.5m.

"These two contracts have given the company in excess of 70 new customers," said the company.

"With the bulk of the business likely to fall outside the typical seasonal summer peak of the education business, the company has been able to absorb these contracts without a significant increase in its cost base," Viglen stated.

The cash balance fell £600,000 to £2.8m, inventory went up 16.6% to £4.8m but debtor days fell from 50 to 46 days.

Staffing levels remained largely flat year-on-year with the notable absence of Lord Sugar, who resigned last year as revealed by MicroScope.

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