Profits fall at Blackburn wallpaper firm Graham and Brown (From Lancashire Telegraph)
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Profits fall at Blackburn wallpaper firm Graham and Brown
10:00am Friday 5th October 2012 in News
RISING material costs caused operating profits to fall at an East Lancashire wallpaper giant.
Graham & Brown said its operating profits dropped from £3.8million to £1million in the 12 months to December 2011 due to a combination of rising commodity prices and significant investment in its international presence.
Overall turnover grew 0.5 per cent from £90.07million to £90.56million due to the impact of a more challenging climate in the UK retail sector.
And overseas sales grew 4.3per cent from £45.7m to £47.7m in the same period, representing over half of its total sales. Over the last three years, export sales have increased 50 per cent.
The Blackburn-based firm said exports had been driven by strong demand from emerging markets in the Far East, Middle East, North Africa and Russia.
Trading performance had recovered in the current financial year due to a series of cost reduction initiatives implemented last year and greater stability in raw materials costs, bosses said.
Chief executive Andrew Graham said: “Our combination of ‘Made in Britain' heritage and contemporary design has helped us penetrate key overseas markets, particularly the Far East, Middle East, North Africa, Russia and Eastern Europe, where we continue to invest in our market presence.
"These are markets where domestic wealth creation and increasingly international tastes in premium wall decoration are driving demand for our brand.
"While the global economy remains challenging for most consumer products manufacturers, we remain focused on delivering exciting new designs, both in house and in partnership with some of the world’s leading interior designers, as well as technical innovations to drive market growth across our markets."
The firm sells its range of wallpaper, wall art and paints in more than 75 countries and has sales offices in the US, France, Holland, Russia, Canada, China and Germany.
It develops collections with the world’s leading interior designers, including Wayne Hemmingway and Laurence Llewlyn-Bowen.
Graham & Brown was founded in 1946 by Harold Graham and Henry Brown. It has around 650 employees.
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Comments (35)
11:11am Fri 5 Oct 12
alf-abett says...
Mr Brown senior was a true gent with a kind heart and looked after his employees well, I remember when in the sixties if you worked overtime after your normal days work they provided a small meal FOC.
Mr Graham I did not know, he had passed away several years earlier, but if his son Roger is anything to go by then he must have been a great chap.
David Brown and Roger Graham the respective son's of the founders worked tirelessly to improve products and product ranges, it was they who put Graham and Brown on the map by nearly bankrupting themselves by introducing Blown Vinyl wallcoverings to the UK and then on to become one of the Worlds finest Wallpaper manufacturers.
The 3rd generation of their respective families are now in place and I believe, as firmly committed as their forefathers
were in consolidating Graham and Brown's position at the top of the tree.
Good luck to this still family owned company and all the best for the next sixty odd years.
11:35am Fri 5 Oct 12
2 for 5p says...
I worked for them in the mid 90s I hated it they thought more about profits than the workers.
But each to his own , if you like being a creep.
12:58pm Fri 5 Oct 12
alf-abett says...
Silly question? I would not expect you to reply in the affirmative.
1:37pm Fri 5 Oct 12
tntoast says...
1:52pm Fri 5 Oct 12
2 for 5p says...
I had a injury on there premises they wouldnt keep the job open while I recovered. So poke it was my reply to them.
Alf a bet and TN toast you continue to DoB your caps and see what pay rise they give this year.
profit before staff.
2:03pm Fri 5 Oct 12
makaveli96 says...
2:37pm Fri 5 Oct 12
RUinsane says...
2:49pm Fri 5 Oct 12
RUinsane says...
How can any company compete with that? The anwser is to increase import duty so it costs them the same to get it here. We are one of the biggest consumer markets in the world yet we undercut ourselves in order to get cheap goods, we'd sooner be out of work so we can get an iphone for 30 quid a month.
2:54pm Fri 5 Oct 12
RUinsane says...
3:08pm Fri 5 Oct 12
tntoast says...
3:22pm Fri 5 Oct 12
2 for 5p says...
If you want my advice, I would say go on strike, oh no sorry I forgot you don't have a union there do you. :-)
3:41pm Fri 5 Oct 12
tntoast says...
4:12pm Fri 5 Oct 12
happycyclist says...
4:42pm Fri 5 Oct 12
RUinsane says...
I actually feel really sorry for the unemployed being costantly bombarded by morons calling them all scoungers. Unless someone has stashed 5 million well paid jobs in a drawer somewhere whats the pont of trying to blame someone who has no option. Turning into a nazi state and some people don't realise how easily they are being spoon fed propoganda, they actually believe they made a conscious decision. Me?, you can't make up something you don't posess, your own mind. :0)
5:07pm Fri 5 Oct 12
2 for 5p says...
Now next year that will be intresting to see. :-)
5:16pm Fri 5 Oct 12
darwenTower says...
The masses of this country are buying us into poverty.
6:12pm Fri 5 Oct 12
shaggybpc says...
7:31pm Fri 5 Oct 12
Hardcastle says...
There should be a decent future in exports provided G&B can keep a good quality and design advantage. The growth of their export business in the last three years proves the point.
Why are so many people so negative and pessimistic?
8:18pm Fri 5 Oct 12
Dozza17 says...
9:28pm Fri 5 Oct 12
RUinsane says...
About 11 years ago Emerson and Renwick, the machine manufacturers that make the blown vinyl machines. Delivered 5 shiney new integrated lines that went from raw product to going out the door in one continuous process, they delivered these lines to Russia. Now bearing in mind they've now had 11 years to perfect the process and they don't have the same environmental issues to address and the workforce are paid in peanuts.
Which company do you think will still be around in another 20 years?
Also around 12 years ago the chinese were also investigating wallpaper and mass production. They have no environmental regulations and pay their workers in rice.
Same question, in 20 years who do you think will still be around?
So you are saying quality will save them. Did it save TVR Crown ICI Philips. You are deluded. People are just bothered about price. If its cheap, great stuff, if its good quality and cheap, its a bonus. Take alcohol as a rough guide, you can get 3 litres of white lightning for £5, why do you think they sell so much of it. If it tasted like moet chandon it would be considered a bonus. As the guy above stated you are all buying yourself into poverty.
The reason I got out of the wallpaper industry is I saw what makaveli and I wrote.
The writing was on the wall and we were just papering over the cracks,
. The consumer has driven the prices down so far manufacturers can't produce it any more so it all gets done at these third world super factories with the trained monkeys.
Or to put it more bluntly for you to see. The wallpaper industry has shrunk to next to nothing in the last fifty years, so yeah specialist papers like flock block print and lincrusta may survive, but they will be like cottage industries. If you want to reverse this trend all imports should have massive duties imposed on them, then it would be cheaper to buy our own produce and there would be jobs in abundance. Until then, enjoy your Iphone.
9:39pm Fri 5 Oct 12
lostforwords says...
9:40pm Fri 5 Oct 12
2 for 5p says...
I also think it will go down the tubes in a few years.
People and businesses rant on about buying British yet these firms will buy a lot of its raw produce and outsorce work abroad.
Its simply a case of profit before people and that is across the board.
I would advise anyone working there to start practicing signing there name
Because they will be doing that quite regularly, well once a fortnight. :-)
10:11pm Fri 5 Oct 12
burner says...
12:17am Sat 6 Oct 12
RUinsane says...
1:05am Sat 6 Oct 12
kenbro says...
The big stores are making a killing. Buying cheap and selling high. Most customers just look at the price tag. Cannot be good for all our countries futures. I have some Graham and Brown paper on my walls.
1:07am Sat 6 Oct 12
kenbro says...
I think they were part of Crown Wallpapers eventually.
1:21am Sat 6 Oct 12
Dozza17 says...
9:11am Sat 6 Oct 12
RUinsane says...
What you fail to recognise is that manufacturing is moving out of this country.
The only manufacturing jobs left behind will be in perishable goods like food. Pizzas pies etc etc, any process where the item has shelf life will be made abroad. If you can't see this happening then I feel sorry for you.
Crown wallcoverings was a 150 year old company. Whats how old got to do with anything?
Import duties need to be raised, we and the rest of the free world are under attack from emerging economies. The only sad thing is it is our governments who are encouraging it so the money men can make more of it and you can enjoy your iphone for 30 quid a month.
If that fails to sink in, stick to pasting paper.
9:23am Sat 6 Oct 12
RUinsane says...
10:06am Sat 6 Oct 12
2 for 5p says...
Because they take everything that is thrown at them, they have got no fight left in them. Three always frightened of going on strike.
And now the controlling classes have got the whip hand over us. That is partly due to ar#eholes like tntoast and alfabet with there boss praising attitudes , thanks guys for selling us all down the river.
11:40am Sat 6 Oct 12
alf-abett says...
I suggest that you go lie down now and I guarantee that when you awake, life will still be as is and you will still be a waster with no future and living off the dole,
1:03pm Sat 6 Oct 12
2 for 5p says...
However I am far from being on the dole I am very successful person working as a civil servant.
The problems with this country start and end with the likes of you not me .
2:21pm Sat 6 Oct 12
alf-abett says...
6:43pm Sat 6 Oct 12
2 for 5p says...
6:56pm Sat 6 Oct 12
Rimbus says...