SHER Brothers, the Glasgow-based wholesaler and exporter, slid into the red in its last reporting period after writing off “substantial” debts though current trading has been described as profitable.
Newly published accounts reveal that the business racked up a loss before tax of £2.74 million in the period from 1 January 2013 to 31 May 2014. That compares with a profit of just under £53,000 in 2012. Turnover in the latest, extended period was just over £66.8m compared with £56.5m a year earlier.
Writing in the firm’s annual report, director Munawar Hayat said: “The company has… recognised a substantial amount of bad debts which have accrued, principally, as a result in the slow down of the UK high street since the economic downturn of 2007 and the effect this has had on some of its major customers.
“Losses were also sustained on an Asian and a European customer. These debts have arisen over a few years but the company hoped to recover them. It has now proved impossible and the debts have been written off.
“Having refocused the company’s trade, a couple of years ago, into the overseas export market, the directors are pleased to report a profitable year of trading before bad debts and exceptional items”.
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