Wholesaler JW Filshill has revealed strong growth in its latest financial results, with turnover rising 6% to £215m, up from £203m in the year ending January 31, 2024, and operating profit rocketing 45% from £2.9m to £4.2m.
The business, which operates the KeyStore franchise, also saw gross profit rise 15% to reach £22.3m in the same period, while net assets rose 14% to £21.6m.
Keith Geddes, Chief Financial and Operating Officer, said improved growth and profitability was “particularly impressive” given that it relocated from its previous headquarters at Hillington to its purpose-built site in Renfrew during the period.
“The investment in the new facility and other projects throughout the period has taken the level of investment in the future of the business to £6.6 million over the last two years and demonstrates the commitment and confidence we have in our future.”
He added: “Operational efficiency generated from the new distribution centre has not only created significant benefits to the company and customers in terms of operational process but also in improved safety, and has led to additional capacity being generated which has allowed us to seek out new opportunities with our suppliers and customers. Our product availability to our customers is industry leading as a result.”
Geddes hailed a strong focus on data as key to the firm’s success. “We created a standalone data and reporting team, including the recruitment of an experienced data manager and data programmer to supplement the analyst capability already in the business.
“All departments and areas of the Filshill business are encouraged to identify opportunities where data, machine learning and AI could be used to improve our business and help deliver improvement and success to the company, customers and suppliers alike.”
However, the group pointed to ongoing inflation and increases in the cost of living, with increases in the cost of fuel and food and drink causing “uncertainty for the group, our staff, our customers and suppliers”.
He claimed that Filshill continued to measure revenue, gross margin and operating profit as key financial indicators and monitor non-financial KPIs including staff performance, grammes of carbon created per case, vehicle fuel performance, sales service levels/ range achievements, unanswered telesales call, returned orders, and early warning date codes.
Geddes said: “The independent retail market remains highly competitive and challenging, and we seek to manage the principal risk of losing customers by aiming to deliver best-in-class customer service. Any loss of support of key suppliers in terms of supply or credit is a key risk.
“To offset this, the group works hard to maintain strong partnership-based relationships with all suppliers and was again recently ranked number one by suppliers in an independent survey (Advantage Group Mirror Report) across our key competitors for the 14th consecutive year.”
During the period, Filshill also continued to develop its strategy around reducing its carbon footprint, identifying areas where it can positively influence a reduction in its carbon impact and work towards a net-zero emissions position.
Geddes explained that the company measures C02 usage in grammes per case delivered and said: “We are pleased to report that this has declined by 14% in the past year”.
Simon Hannah, Group Chief Executive Officer, said Filshill engagement with its workforce on health, mental health and wellbeing remained key to its activities, with financial planning given the cost-of-living crisis, suicide prevention, and healthy eating all featuring in regular support sessions.
“A number of new mental health first aiders have been added to our team but there has also been refresher training for those trained in previous years to maintain the high level of support available to the full team and to our Keystore partners,” Hannah noted. “The company currently has over 30 fully trained mental health first aiders.
“Engagement with charities and local support organisations around our Westway site but also in individual Keystore customers’ neighbourhoods is targeted at areas identified through feedback sessions with staff and customers to maximise the support we give the Filshill team and maximise our engagement with the local community. We are proud of our contribution to supporting our community.”
He added: “Driving our safety-first culture remains a cornerstone of everything we do. This has been particularly important as the relocation of our distribution centre required all operational and support functions to be assessed and new safe working practices defined and trained out. Our workforce retention and ability to recruit has been positively impacted by these initiatives.”
