Swift announces 2016 financial results
Swift attributes its profitability increase to a focus on product quality, design and product mix
Wednesday, 22, Mar 2017 11:47
by Tom Leaning
Swift Acquisitions Limited, the parent company of Swift Group, the biggest leisure vehicle
manufacturer in the UK, has released its 2016 financial results.
- A record turnover of £252m, an increase of 19 per cent on the previous year, with growth across all product lines (touring caravans, motorhomes and holiday homes)
- A record operating profit of £17.5m, more than double the previous year's level
Whilst this level of growth reflects very positive market conditions for the industry, Swift also attributes its profitability increase to a focus on product quality, design and product mix. Careful management of the cost base of the business and efficiency gains realised from investments in manufacturing processes and techniques have also led to profitability improvements. The company has significant foreign currency exposure, which was carefully managed to yield a positive result.
With the profit growth and cash that has been generated there has been considerable investment in the areas of innovation, quality systems, customer choice, the dealer network and the retail customer experience. Investments have also been made in improving and enhancing the manufacturing facilities, with £4.9m spent within the 2016 financial year, and a significant sum of planned capital investment in the forthcoming year, including a new holiday home production line. Shortly after the August 2016 year end, the company became debt free by clearing early the debt taken on in 2012 to strategically grow the business.
Swift attributes the success of recent years to its focus on delivering market leading products in terms of design, technology, content, quality and choice, in what continues to be a very competitive market place.
The outlook for the coming year remains positive, with trade continuing strongly supported by innovative new product launches including the crossover camping vehicle Basecamp, the luxurious twin unit Whistler Lodge, and the S-Pod 4 providing hotel quality accommodation on a park.
"The Directors are extremely pleased at the growth in our business. Significant investments in capital equipment, training, education and technology have been made which further enhance the total Swift offering. We are well positioned to take advantage of future opportunities and challenges in what is currently a buoyant market", commented James Turner, Managing Director.
"Our financial strength provides security in an uncertain world and also great scope to continue investing and innovating, increasing confidence for retail customers, dealers, suppliers, and employees, and reinforcing Swift's leadership of the UK market."