Sales up, profits down at DCI
October 31, 2018
Brexit impacts on exchange rates and drives profits down, says DCI in its 2017 filings.
DCI sales for 2017 were £21.47 million ($27.34 million/€24.12 million), up 5.9 percent on 2016’s £20.72 million ($26.39 million/€23.28 million). However, the cost of sales was £16.39 million ($20.87 million/€18.41 million), up 18.6 percent on 2016. The company reported an operating loss of £176,402 ($224,682/€198,189), against an operating profit of £1.3 million ($1.65 million/€1.46 million) in 2016. The company attributes this to the negative effect that Brexit has had on exchange rates.
In February 2017 the UK remanufacturer entered a partnership with Kodak to produce a range of Kodak-licenced products from their 32,000 m2 purpose-built production facility in the UK, where all inkjet and toner cartridges are produced under one roof.
The range of Kodak-branded ink and toner cartridges are for use in HP Inc, Epson, Canon, Samsung and Brother printers, and “as with all Kodak licenced products where the recommended retail prices (RRPs) of the remanufactured Kodak cartridges will sit in a range of 20 and 40 percent below the equivalent branded cartridge.
The United Kingdom will exit the EU on 29 March 2019. However, Brexit negotiations are ongoing, and the uncertainty of is having an impact. According to the Confederation of British Industry (CBI) “…negotiations are impacting business and that ongoing uncertainty is having a negative impact on investment decisions for eight out of ten firms. And almost one in five firms say the point of no return for triggering their plans has already passed. Contingency plans include cutting jobs, adjusting supply chains outside the UK, stockpiling goods and relocating production and services overseas.”
Categories : World Focus
Tags : Business DCi Financials
