Superdrug deal set to push AGM back into profit

HIGH street stalwart Superdrug has awarded Port Glasgow-based shopfitter AGM Group a contract to refit 13 of its Scottish shops.

Winning the work from Superdrug is expected to push the company back into profit.

Andrew Meek – who founded the firm nearly ten years ago with a loan from the Princes’ Scottish Youth Business Trust, now called Youth Business Scotland – said: “We’ve just had our best quarter ever. I think the worst is behind us.”

During the economic downturn, the company shifted its focus to larger contracts with retail chains rather than tendering on individual projects. Recent clients have included car parts and bicycle retailer Halfords, budget grocer Lidl and hotel chain Premier Inn.

The firm also won a £400,000 office fit-out contract from the NHS Glasgow & Clyde health board.

The deal with Superdrug, which is owned by Hong Kong-based conglomerate Hutchison Whampoa, is having the most-significant impact on the firm.

Meek said: “We have been doing fit-out and refurbishments of stores – we have 13 to do now between now and the end of November.

“The relationship with Superdrug has developed in the past few years. We are really now its Scottish contractor.” Each store refurbishment will represent an investment of between £30,000 and £100,000, Meek said.

He admits that the past year has been “very challenging” and he is pleased the firm has been able to maintain a flat turnover of around £1.4 million in 2012.