Lancashire manufacturer JJO achieves best results in 140-year history

J&J Ormerod (JJO) plc has achieved its strongest annual financial results in 140 years with the help of accountants and business advisors Beever and Struthers.

The firm, which has offices in Manchester, Blackburn and London, provided Lancashire-based JJO with strategic advice that enabled the kitchen, bedroom and bathroom manufacturer to save thousands in tax relief and grow its takings for the year ending February 2016.

During the last two financial years, Beever and Struthers helped JJO to save £68k in total by claiming tax relief on R&D spending, including on cash invested in a new paperless IT system.

As a result of the upgrade, JJO’s credit staff were able to handle more orders, boost operational efficiency, cut costs and minimise bad debts.

The manufacturer likewise improved its working capital and achieved a 6% increase in turnover to £43.6m, along with 21% growth in its gross profit at nearly £13m.

The record results bolstered the firm’s balance sheet, with cash reserves near doubled to £3m and net current assets up 32% to almost £8.5m.

Beever and Struthers partner Iain Round, who leads the company’s specialist team providing JJO with audit and company tax services, said: “The delivery of our tailored services and in particular, expert advice on maximising the benefits to the bottom line of being able to claim tax relief on R&D tax spend, is reflected in these record breaking results from JJO and we congratulate the business on its historic achievement.

“An increasing breadth and depth of talent at Beever and Struthers is allowing us to fulfil our ambition of achieving better for all of our valued clients.”

JJO’s joint MD, Stephen Greenhalgh, commented: “The advice given by Beever and Struthers allowed us to get on with running our business, whilst they did the heavy lifting at the audit and ensured we received the allowances the company was entitled too.

“Our success is based on constant reinvestment in all aspects the business, whether that may be infrastructure, state-of-the-art equipment, systems or our people.”

He added: “Clearly the Government intends that such investment in the future is rewarded.”

Founded in 1876, today JJO employs a team of 360 staff at its 1,100,000 sq ft base in Bacup, Lancashire.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →