John Lewis of Hungerford swings back to profit

John Lewis of Hungerford swung back into the black in the year to the end of August posting a pre-tax profit of £107,205 against a loss of £411,258 last time.

Revenues of £8.3m were up from £8.2m a year ago.

Non-executive chairman Gary O'Brien said: 'It has been a year of considerable change within the business and so it is particularly pleasing to be able to report a return to profitability.

'This reflects another strong sales performance against a backdrop of the previously reported cost reduction initiatives.

'Effecting operational change within a small business inevitably creates huge disruption and it is to the credit of the executive team that they have not allowed this to distract them from the running of the business.

'During the year we instigated a detailed operational review including all administrative areas.

'Key changes include improvements in the management information produced within the business; changes in the production facility where weaknesses in our systems and processes have had a direct impact on our past profitability, together with a review of all the processes related to our customer engagements.

'This review helped us to identify the need to support the brand identity through improvements in our marketing collateral and also to consider the development of an internal CRM system which will assist us in our endeavours to ensure maximum customer satisfaction and recommendations.

'All of this activity has been undertaken during a tough economic climate, when it has been critical to keep the business trading well, which in itself has been instrumental in keeping our employees engaged and motivated.

'The review has demanded a significant amount of management time, however we are already seeing the results of some of the developments across the Company, and we look forward to seeing the benefits continue to come through in the period ahead.'

At 8:28am: (LON:JLH) John Lewis of Hungerford PLC share price was +0.13p at 1.1p