Inverness renewable energy firm expects a change in fortunes
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Korrie Mechanical and Plumbing experienced a drop in turnover for the year ended February 28, 2019 and went into the red.
Directors of the firm, which is involved in the installation of renewable energy products, expect fortunes to change after last year included a restructure of the business.
A strategic report accompanying the firm’s latest accounts stated an operating loss resulted from challenges of new geographical areas to operate in and a tightening of market conditions.
It added: “The most significant impact on operating profit was a one-off cost relating to a historical insurance claim which is now settled, giving the directors comfort that the business will return to an operating profit in the coming financial year.
“The company is confident in its future financial prospects with a clear strategy to expand its geographical presence into the Aberdeen marketplace together with the further broadening of its service offering.
“Continued turnover growth is expected in the new financial year with a return to growth in operating profit.”
Pre-tax profit fell from £220,922 in 2017/18 to a pre-tax loss of £173,860 in 2018/19. For the same period, turnover dropped from £17,670,592 to £15,040,365.
The average number of employees fell from 147 to 136, while staff costs went down from £5,947,706 to £4,953,279.
The firm’s ultimate parent company is Edwin James Holdings in Scotland.
