Kronospan, a chipboard manufacturer based in Wrexham, has reported profit growth in its latest set of financial results, even though overall turnover dipped slightly.
The company, which is one of Walesâ largest by turnover, put the growth down to reduced energy costs and an improved product mix, one of which is a wood-based panel product which is used in interior design, furniture, architectural and specification industries.
It sells the product to DIY, furniture and construction sectors in the UK, Germany, France and Benelux.
Kronospan Holdings Ltdâs most recently filed accounts reported a profit of £16.1 million before tax in the year ending September 30, 2015, which was a £12 million increase on the previous year.
Adjusted earnings (EBITDA) also grew from £30.7 million to £34.4 million; however turnover dipped from £335 million in 2014 to £326.7 million last year. The average number of staff employed by the group also rose from 883 to 894.
The firm said that the improvements in profitability were achieved thanks to improved product mix, continuing reductions in both chemical and energy prices coupled with reduced gas consumption due to the new biomass boiler in the UK.”
However, it said that turnover had been impacted by a weakening in selling prices combined with a lack of UK sales volumes.
In a report that accompanied the results, the company director said that UK trading conditions remain relatively stable, although the strength of the sterling will keep having an adverse effect on selling prices.
“The directors recognise the uncertainty in the immediate economic outlook but would expect to be able to improve profitability through sales growth and a reduced cost base through capital investments, he added.
Recently, the firm was ranked 15th in a list of Walesâ 300 biggest companies, based on its results of the previous year. The company employs 14,000 people worldwide across 40 sites.