A BIRKENHEAD cotton company has returned to the black after turning a £13m loss, in 2008, into a £180,000 profit in 2009.
It was achieved despite a significant fall in turnover from £247m to £179m due to adverse conditions.
Plexus Cotton was founded in 1990 and operates a global network of partnerships involved in farming, warehousing, logistics and marketing operations.
It owns The Great Lakes Cotton Company, in Mauritius, and a sister operation which farms cotton in Malawi. Other interests include the Western Ugandan Cotton Company and the North Bukedi Cotton Company, in Uganda.
Its latest set of accounts, filed at Companies House, revealed that two of its loss-making businesses in America and Zambia were put into administration in 2008, aiding the return to profit.
Plexus also realised £923,000 on the sale of three assets, including property in Hong Kong worth £761,000.
The group’s debts rose from £40.5m in 2008 to £53.7m at the end of 2009.
But the directors’ report said: “In line with the gradual return of confidence in the world economy, 2009 saw a similar progression in the cotton industry. On the back of this, Plexus returned to profitability and the UK trading business performed increasingly well as the year progressed.”
Prospects in Malawi were helped by the involvement of the Gates Foundation – established by Microsoft founder Bill Gates – aimed at assisting farmers in poorer countries.
