Turnover for the year was £1.3m (2022 - £2.3m} generating a profit of £76,087 (2022 - £168,713).
The reduction in turnover primarily relates to the termination of long term contracts which we were unable to successfully secure/re-tender due to high level of competition and reduced opportunities in the market as a result from the impact of Covid-19. However, we have maintained a very lean business model to counter these losses so our bottom line was not heavily impacted.
Principal risks and uncertainties
The director remains alert to the risks prevalent in a commercial environment and continues to take steps to minimize or mitigate these risks.
As contracts come to an end and faced with the uncertainties in the market, we have adopted strategies to reduce the risks in managing and delivering cleaning services to our clients. Our focus has remained in providing excellent services and retaining profitable clients.
Position of the company at year end
All financial performance indicators were in line with expectations and reflect the company's activities during the year.
We anticipated a reduction in turnover as long term contracts came to termination. Efforts were made throughout the year to counter these by bidding for new contracts which we have found very challenging.
Key performance indicators
The director continues to use both financial and non-financial key performance indicators to manage the business. The business maintains a strong management information function which is focussed on regular and accurate reporting. Such reporting sees particular focus on project margins and profitability.
Labour costs remain the business' highest running cost. We have developed MIS/KPI in line with the requirements of operations to have visible and up to date information for directors/managers to ensure we are in line with expectations and we benchmark ourselves with such information. Any deviations recorded prompt the business to take remedial actions where we could allocate our manpower resources effectively.