Accounts filed today (27 November) showed gross profit also dropped for RPM from £22.3m to £19.4m, a decrease of 13%. Operating profit fell from 2013’s figure of £942,693 to £462,891 and profit before tax had decreased by 58%.
The strategic report however was positive, stating that despite a decline in turnover, the year represented a successful year of trading. The drop in revenue was attributed to a quieter summer period following the buoyant market at the London Olympics that bolstered figures the previous year.
The report stated: "This downturn was anticipated and careful management of cost of sales and administrative expenses ensured that the company maintained its gross and operating profit margins on a like-for-like basis. The net asset position and cashflow remained strong."
Looking ahead, RPM’s board cited low growth in the Eurozone, high levels of employment and a £125,000 investment in a film project as uncertainties in 2015. It added that it would look to invest in new business generation in other markets and broaden its offering to counter these risks.
Comment below to let us know what you think.
For more in-depth and print-only features, showcases and interviews with world-leading brands, don't miss the next issue of Event magazine by subscribing here.Follow @DollyDeighton