Outdoor equipment and clothing supplier AMG Group has seen its profits more than double helped by soaring export sales in its trekking range, a partnership with the Scouts and growth in its awnings division.
The owner of the Vango, Force Ten and Blacks of Greenock brands saw turnover rise more than 25 per cent from £26.8 million to £33.7m according to recently filed accounts for 2014.
Overseas sales accelerated from almost £2.2m to £3.6m while in the UK turnover went from £24.6m to £30.1m.
The Port Glasgow company said its core operations had performed well in the year in spite of ongoing challenging economic conditions in the UK and European retail sector.
The rise in sales helped it post pre-tax profits of £3.3m, up from £1.56m in the prior year.
Stephen Newlands, managing director, said even though the business has an association with the Scouts going back several decades it only formalised the alliance in 2013.
That saw the 2014 financial year cover the first 12 months of Vango, which takes its name from its Govan roots, being a recommended supplier to the organisation.
AMG has also recently signed an extended supply agreement with the Duke of Edinburgh.
Mr Newlands said: “Both Duke of Edinburgh and Scouts will produce a recommended kit list of things like rucksacks, sleeping bags, camping tents, accessories, head torches.
“A lot of the products on the list are Vango products and we have exclusivity for rucksacks, sleeping bags and tents.”
He confirmed the Vango footwear range, launched in 2014, had also drawn positive reviews from those organisations.
In the export market Vango, which makes up more than 85 per cent of AMG’s total sales, is now available in more than 30 countries.
Mr Newlands outlined how trekking equipment had grown strongly in Germany, Belgium, Luxembourg, the Netherlands and South Korea in the financial year. Australia, New Zealand and the Czech Republic were among the other markets showing good levels of growth.
Mr Newlands said plans to enter the United States were still being looked at.
He said: “We have been testing the water in the US with a partner. It is such a diverse market that it is a tough one.”
The company’s awnings are based on its airbeam technology first used in Vango tents. That uses inflatable beam in place of traditional poles meaning pitching can be done in a matter of minutes.
Mr Newlands said AMG had seen a big take-up of its range of caravan awnings which were launched in 2014. It already provided awnings for motorhomes and camper vans.
He said: “Being able to connect an Airbeam structure on the outside of the vehicle and erect it in a relatively short time, five to 10 minutes, is seen as fantastic by many people.”
The caravan awning recently won an award from the Caravan Club and Mr Newlands said: “We are new to this [market] so to get immediate recognition has been fantastic.”
The accounts show total employee costs rose from £3.11m to £3.25m and the company, which employs 95 at its two units in Port Glasgow and repair service division in the east end of Glasgow, has since introduced the living wage to all its staff.
Mr Newlands said 2015 has been “very good” even though the weather in the UK meant it had not been a great year for family camping.
He expects revenue to be between seven and 10 per cent up on last year. The company’s order book for next year is about five per cent ahead and planning for 2017 has already started.
The business was bought by its management in March last year with the Moodie family, who had been involved in AMG for close to 50 years, giving up majority control to Mr Newlands, commercial director Steve Craig and product director Glenn Andrews. Mr Newlands is the largest single shareholder.
He said: “We had run the business for quite some time and we have kept a real focus on the day to day. We believe in taking small steps and hopefully they tend to follow our strategic goals.
“Inevitably something will trip you up but you will have not gone too far down one direction to do a U-turn.”
The accounts show directors’ emoluments increased from £606,107 to £618,828 although the highest paid saw theirs decline from £216,648 to £214,942.
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