Gael Force Group shows resilience by returning a profit despite dip caused by Covid
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Gael Force Group recorded dips in turnover and pre-tax profit following its strongest year in history.Gael Force Group recorded dips in turnover and pre-tax profit following its strongest year in history.
The Inverness-based firm provides equipment, technology and services for the aquaculture, commercial marine and leisure marine markets.
A strategic report accompanying the firm’s latest accounts for year ended December 31, 2020 stated: “In 2019 the group had the strongest year in its history, benefitting from the recent strategic investments in product development and acquisitions.
“In 2020, however Covid-19 impacted us with some orders cancelled, projects deferred and some projects not obtaining the planning permissions required to proceed.
“However, in the face of these challenges the group demonstrated its resilience and ability to continue to generate strong cash flows despite demand being impacted by Covid which reduced turnover by six per cent reducing operating profit to £2.3 million.
“The group’s focus on reinvestment in continual business improvement and product development across the product range position us strongly for long-term sustained and significant growth.”
Turnover decreased from £41,902,520 in 2019 to £39,373,903 in 2020. For the same period, pre-tax profit dipped from £2,619,596 to £2,220,527.
Its business in ‘Atlantic Canada’ maintained a satisfactory level of activity.
The report added: “While there is uncertainty and risk arising from Covid-19, the directors feel that the strength of the business is such that it is well placed to cope with significant demand reduction.
“The impact on our long-term strategy therefore is limited and with demand expected to return in 2022/23, Covid does not pose a significant material threat to the business.
“The core aquaculture market has remained strong through the pandemic in 2020 and industry outlook remains positive on investment in growing capacity over the next 10 years. During the initial lockdown period in 2020, the company demonstrated its resilience and the directors felt the company was able to quickly adjust and adopt measures which allowed the business to continue [to] operate successfully.”
The average number of employees increased from 252 in 2019 to 258 in 2020, while staff costs decreased from £8,158,330 to £7,939,448.
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