Temporary kitchen specialist PKL has increased its profitability despite suffering a dip in sales during its latest full-year accounting period.
The company saw turnover slip 6% to £15.6m for the 12 months to 30 April 2017, according to accounts published by Companies House yesterday.
However, the successfully managed to improve its bottom line after reducing costs by more than £2m. Operating profit rose from £3.06m to £3.68m year-on-year, while net profit rose 25% on the same basis to £3.03m.
Subsequent to the closure of the accounting period, the board approved a dividend of £1m to parent company PKL Topco Limited on 31 August.
PKL describes its principal activity as “the supply of outsourced catering infrastructure, including temporary kitchens, catering equipment for hire and permanent modular kitchens”.
Analysis of its year-on-year turnover performance therefore has to take into consideration the nature of the contracts it is involved and the fact that hire projects may be spread over a long period of time.
Where the outcome of a sales contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date.
Additionally, revenue from kitchen equipment rental is recognised over the rental period and revenue from sales of other related goods and service is recognised at the point of sale.
PKL makes around 16% of its turnover from the sale of equipment and the remaining 84% from the provision of services.
In their report, directors of the Cheltenham-based business, which employs 90 staff, revealed the company also operated from a branch located in France during the year.
With regards to the future, they stated that PKL “continues to develop new applications for existing products and undertakes appropriate research regarding the introduction of new complementary products and services”.
The directors also said they were looking for “incremental growth” in both its USelect and Garbage Guzzler divisions for financial year 2017/2018.
U-Select is an innovative concept that allows operators to purchase equipment and hire it back for a weekly payment, while Garbage Guzzler is a waste digestion product that uses bacteria to reduce organic waste by 95%. PKL holds the distribution rights for the product in the UK.