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.
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