Overseas sales lift flooring firm Forbo

FLOOR coverings group Forbo, the last linoleum manufacturer in Kirkcaldy, saw strong growth in profits last year despite tough trading conditions.

Pre-tax profits rose to 6.03 million from 1.19m although the 2009 figure had been affected by more than 1m in exceptional costs including redundancy payments.

Turnover at the company, owned by the Swiss Forbo Group, rose to 114.7m from 87.5m partly due to strong growth in overseas sales to 48.2m from 34.4m. The 2010 figures also included a full-year contribution from two subsidiary companies which were transferred to Forbo Flooring at the end of 2009.

In the directors' report to the accounts, the company said it was satisfied with the results achieved amid "difficult economic conditions".

Gross profit margins dipped slightly to 25 per cent from 27 per cent. The number of people employed by the group rose to 595 from 457 and the highest paid director received a pay package of 149,000, up from 147,000. No dividend was paid to the parent group during the year.

Forbo Flooring is regarded as a world leader in linoleum floor coverings and has a market share of more than 60 per cent in the combined domestic and business market. In 2008, the company strengthened its position with the acquisition of Bonar Floors from Dundee-registered Low & Bonar. Forbo Group operates 14 manufacturing plants and branches in 32 countries.