Motorway construction hits Sher

Sher Brothers, the Glasgow-based wholesaler, said its business was “severely affected” last year by road closures near its warehouse off the M74, as well as by the general economic situation.

The company managed to grow pre-tax profits slightly in 2010 but flagged up a number of challenges in its latest accounts filed with Companies House.

It said difficulties on the high street had a knock on impact on its clothing division, which saw a 5 per cent reduction in turnover, while its hardware and toy divisions also suffered declining sales.

It added: “The food wholesaling business continues to experience difficulties. The closure of access roads to facilitate the M74 motorway project has severely affected the business.”

But it said a small increase in turnover had been achieved in the food division by tightening margins, and added that traffic restrictions should be lifted. The firm plans to launch a number of new products to coincide with the roads reopening, and has sought new export markets for its clothing range.

Sher Brothers grew profits to £427,000 last year, from £415,000 in 2009. Turnover fell slightly to £58.7 million.

The family-owned firm, set up by brothers Sher Mohammed and Rehmat Ali in 1951, had been hoping for a stronger recovery after profits had earlier been dented by the recession and delays to work expanding its warehouse facilities.