THE UK’s biggest cable distributor has seen its pre-tax profits fall by more than £50m after loaning around the same sum of money to its related property company.
Middlesbrough-based Cleveland Cable upped its turnover from £213m to nearly £245m during the year ending April 30, 2012.
However, the company that sells electric cables and accessories all across Europe, saw its pre-tax profits plummet from £23m to a £34m loss during the same period.
The company has blamed the rising price of copper and unfavourable price movements during the year.
But a £50.8m loan to related firm Cleveland Properties and Investments was also released to direct cash flow into that business.
According to the company’s directors’ report, the results for the year are in line with expectations.
“The financial position at the end of the period is considered to be satisfactory,” said director Michael Powell. “Money comes in and money goes out; that’s the nature of business. We will be keeping our heads firmly above water.”
Last year, the company supplied nearly 940,000 metres of cable in a golden £8m deal.
It won the lion’s share of a contract with just one other firm to kit out everywhere from the stadiums and the Olympic village to temporary shops, offices and toilets.
The cabling was used for sound and lighting systems, computers, battery and phone charging, cameras and generators ... not forgetting the Olympic clock and the timer systems to time the athletes.
Around 70,000 separate cables were made and the company took on 50 extra staff.