S Norton & Co. touts profitability

Liverpool, United Kingdom-based S Norton & Co Ltd.  says it has returned to profitability after poor results the previous year, according to the latest published accounts for 2016 for the scrap metal recycling firm.

The company’s annual sales increased to £205 million ($266 million) for the year ending Dec. 31, 2016, up from £147 million ($190 million) the previous year. The company also has reported a £23.9 million ($30.1 million) pre-tax profit for 2016 compared with a loss of £27.7 million ($35.9 million) in 2015.

John Norton, chairman of the firm, says the steady worldwide growth in demand for ferrous scrap over the 12 months enabled the company to achieve a corresponding increase in sales margins. “This was helped considerably by the weakening of [the British pound] versus the U.S. dollar after the Brexit decision in June last year,” he comments.

Given the economic uncertainty that was created by the EU referendum, Norton says the directors were “particularly keen” to expand the range of countries the company does business with. This aim was realized in that 2016 saw S Norton trading with more countries than in the previous year, and the company plans to continue this geographical expansion across the world.

By retaining its workforce through the downturn, even though times were difficult, the company says it was able to take advantage of the upswing when it came. Says Chairman Norton, “The directors wish to place on record their appreciation for the dedication and commitment of all employees over the period.”

Careful management of inventories and maintaining good relationships with its overseas customers also contributed to the firm’s trading success in 2016, according to the company’s officers. Charlie Norton, purchasing director of the firm remarks, “We take good care of all our U.K. suppliers with prompt payment and friendly customer service. That’s what sets us apart as a business in this sector.”

S Norton says it has a five-year plan that has included recent investments in plant, cranes and associated site works of more than £10 million ($12.9 million) at its Barking site in London and further investment of a similar nature planned during the next two years at the firm’s Liverpool, Manchester, Southampton and London sites.

States Managing Director Roger Morton, “As well as strengthening and updating our plant and equipment across the whole group, significant investment in IT and systems will improve the efficiency of the business as we grow. We have also invested in expanding our compliance team to maintain our position as one of the leading metal processors in the U.K. from a safety, quality and environmental compliance standpoint.”