Safety equipment giant Arco announces loss but says turnaround programme is making progress

Safety equipment supplier Arco made a loss last year as the company battled against inflation and a delay in passing increases through to sales prices but said a transformation programme under new management was making progress.
Lizzie Murphy
By Lizzie Murphy
Published 6th Mar 2024, 16:45 BST
Updated 6th Mar 2024, 17:34 BST

The Hull-based company, whose activities include the supply of personal protective equipment, made an operating loss, before exceptional items, of £3.3m in the 12 months to June 30, 2023, compared to an operating profit of £5.8m in 2022. Revenue dipped to £306.7m, from £307.1m in 2022.

Guy Bruce, who was appointed as the company’s new chief executive in December 2022, launched the Destination 2030 strategic framework focusing on brand heritage, safety services, expertise and experience, and commitment to sustainability.

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Stage one of the transformation plan, called Fix the Foundations, is well underway, he said. Stage two, known as Build for Growth, will begin from mid-2024 to target increased share across the safety market.

Arco, whose activities include the supply of personal protective equipment, made an operating loss, before exceptional items, of £3.3m in the 12 months to June 30, 2023.Arco, whose activities include the supply of personal protective equipment, made an operating loss, before exceptional items, of £3.3m in the 12 months to June 30, 2023.
Arco, whose activities include the supply of personal protective equipment, made an operating loss, before exceptional items, of £3.3m in the 12 months to June 30, 2023.

Mr Bruce said: “I joined Arco at an inflexion point for the business as it responded to post-pandemic challenges and global macro-economic headwinds, which have impacted results for the year ended June 2023.

“Nevertheless, Arco remains a fundamentally strong business and a market leading brand that plays a dominant role in a critical and growing sector. Our renewed focus on service and efficiency will act as a key enabler to delivering a sector-leading customer experience.”

Mr Bruce said the company had seen an encouraging start to the current financial year, with EBITDA (earnings before interest, taxes, depreciation, and amortisation) ahead of expectations due to transformation benefits, stronger gross profit margins and cost control.

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Arco’s cash position has also strengthened to £7.8m at December 31, 2023.

Mr Bruce added: “We started our new financial year with our transformation programmes in full swing, our management team embedded, and our organisation aligned and focussed on delivery. The transformation programme is successfully consolidating profitable business performance during this financial year, creating a platform for long-term growth.”

Related topics:ArcoHull