Turnover up but losses increase at MWS

MWS Group, an investment firm led by well-known Yorkshire businessman Melvyn Sadofsky, saw its losses widen in its latest financial year.

The Hull-based group recorded a pre-tax loss of £2.6m in the year to the end of May 2012, compared to a loss of £1.8m the year previously, according to accounts filed at Companies House.

Turnover rose to £6.9m in its 2012 financial year, up from £5.9m in 2011.

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In a statement to the Yorkshire Post, Mr Sadofsky, chairman of the group, said MWS Group has acted to restructure areas of the business following the difficult trading period of recent years which has resulted in losses greater than anticipated.

He said: “That action has included the sale or closure of some companies, and MWS Group’s balance sheet reflects the write-offs of those businesses.

“There are two other sales in the final stages of completion as 
the restructuring process continues.

“The balance sheet is not reflective of the enhanced values of the remaining MWS Group companies which are doing well, which are cash generative and which enable us to look forward to a positive future.”

The group said in the directors’ report that its strategy has been 
to acquire businesses which it considers to have potential for growth and which in many 
cases have suffered losses in the past.

The acquisition programme was completed in the previous year, the group said.

MWS Group said that some of the larger companies in the group, such as The Health Factor Group, incorporating Lifeplan Products, and Ellison Wire Products, formerly Ellison Industrial Products, had a profitable year.

However, investments in some other group companies, such as Alpine Fine Foods, did not generate the forecast profits.

The group has now disposed of its investment in Alpine Fine Foods.

In its 2012 financial year, MWS Group’s companies were involved in the sale and distribution 
of health foods and supplements, classic board games and 
chess sets, DJ equipment and garden products, web retailing, property development and the provision of recruitment, cost management and corporate finance services.