Redundancy charges hit profits at Velux

VELUX, the Fife-based roof window manufacturer, saw profits hit last year after it booked a £700,000 charge for redundancies amid the downturn in the construction industry.

The exceptional costs contributed to pre-tax profits at the company - the UK subsidiary of the Danish Velux Group - falling sharply to 1.8 million from 4.2m in the year to 31 December.

In the directors' report to the accounts, the firm described the result as "satisfactory" given a significant downturn in business activity during the year. Turnover held up relatively well, showing a fall of 9 per cent to some 108m.

Velux was forced to raise prices during the year to help counteract the ongoing exchange rate pressure of the euro against the pound. Staff numbers fell to 168 from 199.

"We are confident that this headcount reduction has left the company with the appropriate level of staff going forward," the directors commented.

The Glenrothes site was set up in 1954 and has a sister manufacturing company, Fife Joinery.

The UK headquarters is one of a number of sites operated around the world by the Velux group which is ultimately owned by the family of founder Villum Kann Rasmussen and charitable foundations, which last year gave 33m in support of non-profit making projects.

A final dividend of 1.2m was recommended by the board of the UK company, down from 2.6m.