Motorway construction hits Sher
The company managed to grow pre-tax profits slightly in 2010 but flagged up a number of challenges in its latest accounts filed with Companies House.
It said difficulties on the high street had a knock on impact on its clothing division, which saw a 5 per cent reduction in turnover, while its hardware and toy divisions also suffered declining sales.
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Hide AdIt added: “The food wholesaling business continues to experience difficulties. The closure of access roads to facilitate the M74 motorway project has severely affected the business.”
But it said a small increase in turnover had been achieved in the food division by tightening margins, and added that traffic restrictions should be lifted. The firm plans to launch a number of new products to coincide with the roads reopening, and has sought new export markets for its clothing range.
Sher Brothers grew profits to £427,000 last year, from £415,000 in 2009. Turnover fell slightly to £58.7 million.
The family-owned firm, set up by brothers Sher Mohammed and Rehmat Ali in 1951, had been hoping for a stronger recovery after profits had earlier been dented by the recession and delays to work expanding its warehouse facilities.