Turnover soars for Scottish wholesaler during pandemic

Glasgow-based Filshill, a fifth-generation business that supplies KeyStore convenience stores across Scotland and the north of England, recorded gross profit of 8.08% during the year, slightly down from 8.4% the previous year.

Operating profit at Filshill, which will relocate to a 120,400sq ft purpose-built distribution centre at Westway Park near Glasgow Airport early next year, increased to £2.3m – 1.2% of turnover – up from 0.67% the previous year.

Directors described this as a “positive improvement but still highlighting how tight profit margins are in the wholesale sector”.

Keith Geddes, chief financial and operating officer, said the group had delivered a strong set of financial results, adding: “The UK economy has experienced a period of extreme uncertainty due to the ongoing pandemic and the group has had to adapt to take account of the massive disruption experienced by all sectors.

“We constantly reviewed controls and working processes to ensure our workforce was operating safely and with the necessary resources and information to minimise any risk to our team.

“There were high costs associated with safeguarding employees and customers, but we took all necessary precautions.

“We were one of the first companies in the UK to make regular lateral flow testing available on site to the entire team.”

Geddes added: “Despite these increased operating costs, the change in consumer behaviours resulted in an increase in demand for convenience retail, which helped offset these costs and generated funds to invest in the growth and future of the business.”

However, he noted that the pandemic had made it necessary for the business to suspend much of its on-trade and international activity during the year – the business supplies local craft beer and craft spirits to international markets.