Turnover rises by nearly a quarter for JW Filshill

Wholesaler JW Filshill has reported a 23 per cent growth in turnover, rising to £191 million in the year ending 31 January2021, up from £155 million in the previous year.

Glasgow-based independent wholesaler recorded gross profit of 8.08 per cent during the year, slightly down from 8.4 per cent the previous year due to the effects of the pandemic.

Operating profit increased to £2.3 million – 1.2 per cent of turnover – from 0.67 per cent the previous year in what directors described as a “positive improvement but still highlighting how tight profit margins are in the wholesale sector”. Net assets increased to £15.2 million from £13.6 million the previous year, an increase of 11.8 per cent.

Keith Geddes, chief financial and operating officer, said that the group had delivered a “strong” set of financial results for the year, despite the period of “extreme uncertainty” that the economy has witnessed due to the ongoing pandemic.

“We constantly reviewed controls and working processes to ensure that our workforce was operating safely and with the necessary resources and information to minimise any risk to our team. There were high costs associated with safeguarding employees and customers but we took all necessary precautions,” he said.

Geddes added that the increase in demand for convenience retail helped the firm offset the increased operating costs and generate funds to invest in the growth and future of the business.

However, he noted that the pandemic had made it necessary for the business to suspend much of its on-trade and international activity during the year – the business supplies local craft beer and craft spirits to international markets.

Simon Hannah, chief executive officer at Filshill, pointed to the group’s acquisition of tonic wine brand Eldorado towards the end of the year, providing an opportunity for the business to become involved in brand ownership and development. “We also revisited our overall company strategy during the year and created a 10-year strategy, built by all employees, to provide focus and clarity of direction for the business going forward,” he said.

“The Filshill team, as key workers, have been incredible over the past 12 months, showing flexibility, resilience and adapting to the continuously changing environment that Covid presented – I couldn’t be prouder of the Filshill family.”

Filshill supplies KeyStore convenience stores across Scotland and the north of England and national accounts including the Scottish Prison Service. The fifth-generation business is set to relocate to a 120,400 sqft purpose-built distribution centre at Westway Park near Glasgow Airport early next year.