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News and Updates

All the latest news and updates from the UK's leading supplier of safety clothing and equipment

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Arco Announces Return to Profit and Ambitious Growth Plans

19 November 2024

Arco Ltd, the UK and Ireland's leading safety expert, has announced a return to operating profit, with financial results ahead of target, one year into its 'Destination 2030' transformation plan.

The Hull-based company’s annual results, published today, show increased profits of £4.4m for the year ended 30 June 2024 (FY24), with the business making a pre-tax profit of £1.3m, excluding exceptional items, compared with a pre-tax loss of £3.1m in the previous year. 

The turnaround in profit was achieved despite sales being 6 per cent lower, as the company focused on quality of earnings and improving gross profit margin. Arco achieved its highest gross profit margin in five years at 23.9% and ended the year with a strong net cash position of £3.5m. 

'Stronger and more disciplined business'

Guy Bruce, chief executive of Arco, said the results demonstrated the effectiveness of the transformation programme in enhancing profitability while driving improvements in areas such as customer service, choice, sustainability and business efficiency.

“One year into our Destination 2030 plan, we have delivered much of what we set out to do in the initial ‘Fix the Foundations’ phase, with financial results ahead of target”, said Guy.

“Arco today is a stronger and more disciplined business than it was a year ago, with improved margins, a healthier cash position and extended capabilities to serve customers effectively as we execute the next phase, ‘Build for Growth’.”

Guy said he was proud of the work done to execute the improvement plans with “determination and rigour” and in line with the company’s core purpose of keeping people safe at work.

Improved customer experience

Arco’s annual report for FY24 outlines how the company has improved customer experience through better service metrics and product availability, employed data-driven decisions to improve margins, and made more efficient use of capital, resulting in its stronger cash position.

Arco has also strengthened its supplier relationships, working with fewer suppliers, but more closely, to develop a proposition that is better suited to its customers’ needs.

The company’s commitment to corporate social responsibility has seen £38.5m of social value generated in FY24, including more than £4m in Hull and East Yorkshire. Arco employees have supported numerous community and charity organisations with biodiversity, environmental and other projects, using the two paid volunteering days the business lets them take each year.

Arco has also continued to focus on sustainability, investing significantly in renewable power, doubling sales of its "Responsible Choice" product ranges and retaining its Gold award from EcoVadis, the world's largest provider of business sustainability ratings, placing Arco in the top 5% of businesses assessed.

Looking ahead

In FY25, Arco is moving into the “Build for Growth” phase of its transformation journey, in which it plans to double investment, enhance its customer value propositions, website and e-commerce capabilities, and introduce innovative new products with “category-defining” sustainability credentials.

The company is planning further investment in its Arco Professional Safety Services business, introducing new facilities and training propositions to strengthen its market-leading position as a provider of joined-up safety solutions.

As well as investing in organic growth, Arco is also seeking to grow through inorganic routes and is actively looking for businesses that would make suitable additions to the organisation.

Guy said: “Focus areas for potential acquisitions have been identified and we’re excited to explore opportunities that present a strong match to those criteria.”

Arco will also soon begin work on a new customer discovery centre in Hull, which will showcase the company’s customer value proposition as Experts in Safety, including its wide range of products and services and independently accredited product assurance laboratory.

Guy said: “We are excited about the progress we will make towards long-term growth this year, and the continued development of an even stronger Arco business.

"While our business is in a strong position, we are mindful of the challenges ahead. The impact of the Government's recent budget will undoubtedly put additional pressure on businesses, including ours. 

“As we move into the next phase of our strategy, we will do so in context of the changing economic environment, seizing opportunities to grow whilst maintaining financial resilience."

Arco FY24 financial summary (year ended 30 June 2024)

  • Pre-tax profit of £1.3m before exceptional items (FY23: £3.1m loss) 
    • Exceptional items of £8.4m related to business transformation
  • Further improvement in gross profit margin at 23.9% (FY23: 22.0%) 
  • Strong net cash position at year-end of £3.5m (FY23: £2.4m) 
  • Revenue £288.1m (FY23: £306.7m)  

Arco Teams up with Hull KR Foundation to Fund Apprenticeship

04 November 2024

Safety specialist Arco has teamed up with the Hull KR Foundation to fund an apprenticeship at the Super League club's official charity.

Arco has agreed to transfer levy funding to the foundation to pay for a Level 5 operations manager apprenticeship.

As well as having its own strong apprenticeship programme, Arco regularly makes funding available to local organisations who want to recruit new apprentices or offer apprenticeships as development opportunities for existing staff.

The 140-year-old Hull-based company has previously funded apprenticeships for Martin House Children's Hospice in 2022 and building repair and maintenance contractor KWL in 2023.

Darren Ford, Arco's head of organisational development and learning & development, said:

"At Arco, we pride ourselves on giving back to the community and supporting great causes.

"Apprenticeships are a great path for people starting out or looking to change careers and for employees looking to further develop their skills and expertise.

"It's great to be able to support the Hull KR Foundation in this way, and we're confident the apprenticeship will be a great success."

The Hull KR Foundation provides people in Hull and East Yorkshire with opportunities to improve their lives through community programmes across four areas: employability and skills, health and wellbeing, social inclusion and sports participation.

Paul Hamnett, CEO of the Hull KR Foundation, said:

"Connecting with Arco has enabled us to support the development of the foundation's staff.

"We want to be able to provide the higher-level development opportunities, and linking into the levy funds is a fantastic way to enable this.

"I am grateful that Arco wanted to support us and look forward to establishing a strong relationship between two Hull-based organisations"

Arco launched its Future Experts apprenticeship programme in 2015 as a key part of the company's talent development strategy.

Its apprentices benefit from a blend of on-the-job training and formal education, with 100 per cent of Arco apprentices having secured permanent positions within the company after completing their training, and 75 per cent remaining employed at Arco for at least 12 months after completion.

Ian Fenton, general manager of Arco's National Distribution Centre in Hull, recently completed a Level 5 operations manager apprenticeship.

He said: "The course was very informative and the sessions I had where other people from other businesses were present really helped me to understand and learn what happens in other businesses, not just Arco.

"I learnt new skills and refreshed myself on skills I already have, which gave me confidence along the way. I would recommend an apprenticeship as it develops you as a manager, a colleague and a person, which will hopefully allow me to progress in my career."

Find out more about working at Arco


  • Arco Skydive Team Raise Almost £8,000 for Macmillan Cancer Support

    29 October 2024

    A fearless team from Arco have taken on a 10,000ft skydive, raising almost £8,000 for Macmillan Cancer Support.

    Chief executive Guy Bruce, commercial director Jamie Sadler and client manager Louise Brown, along with Guy's 18-year-old son, Max, all took part in the "Jump of Their Lives" for Macmillan, Arco's longest-standing charity partner.

    Collectively, the Arco team almost doubled their fundraising target, raising £7,845 to help support people affected by cancer.

    Guy Bruce, chief executive of Arco, said:

    "What a thrilling experience! I am really proud to have completed the jump, but more importantly of what we have collectively raised to make a difference for such an important charity.

    "Sadly, we are too often reminded about the important work Macmillan does as we are touched by stories of colleagues, friends, family and loved ones affected by cancer.

    "Thank you to everyone for your support and contributions. It means a lot."

    Since making its first donation to Macmillan in 1998, Arco has gone on to raise more than £260,000 over the past 26 years and hopes to hit the £270,000 mark in the next 12 months.

    The company recently held its most successful Macmillan Coffee Morning to date, raising more than £1,600 for the charity.

    Fiona Gavaghan, Macmillan fundraising manager, said:

    "We are so thrilled that Arco have got involved with this year's 'Jump of Their Lives', building on their fundraising for Macmillan.

    "It's thanks to fundraisers like Arco that we can continue to be there for people living with and affected by cancer. Every £34 raised during this event will pay for one hour of a Macmillan nurse's time.

    "We can't thank them enough."

    Anyone affected with cancer can contact the free Macmillan Support Line on 0808 808 00 00 (seven days a week, 8am to 8pm) or visit the Macmillan website.

    Find out more about Arco's corporate social responsibility initiatives.

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  • Arco Launches Inclusion Committee to Champion Diversity and Equity

    26 September 2024

    Arco has launched a new inclusion committee focused on driving equity and diversity within the business.

    The UK and Ireland's leading safety expert announced the forming of the new committee as part of National Inclusion Week (23-29 September).

    The theme of this year's National Inclusion Week, "Impact Matters", is about taking meaningful steps toward real, sustainable inclusion in the workplace.

    Arco is inviting any of its 1,400 employees to take part if they choose to do so, with the aim of raising issues and discussing actions that create a supportive and inclusive environment where everyone can be at their best.

    The committee is a strengthening of Arco's commitment to equity, diversity and inclusion (ED&I), and creating a workplace where every voice is heard, and every colleague is valued.

    By joining, staff will have the opportunity to influence decisions and actions that foster a supportive and inclusive workplace environment.

    Chief commercial officer Simon Allan-Brooks is the executive sponsor of the committee, which will be chaired by market research and insight manager Leigh Hanson.

    Asked why he wanted to be the sponsor, Simon said it was important for people in all areas and all levels of the business to be part of the committee.

    He said: "It is a real privilege to be part of such a great committee and driving inclusion forward. I am looking forward to the self-education along the way with our team.

    "For me as an executive, it's really important to be a sponsor for such an important topic. It's also a continuous education journey for me. As a middle-aged, white male, I'm stereotypically the person that needs to really learn about inclusion.

    "So, while it's a topic I'm interested in and one I should be driving, I also have a lot to learn. And what better way than to be involved right from the outset?"

    Arco has worked closely with Garry Clarke-Strange, of Think Inclusion Consulting, to define what inclusion means for the company.

    Garry said: "From working with Arco this year to define their approach to inclusion, to now seeing change and action happen so quickly is refreshing and inspiring in equal measure; and something the entire industry should aspire to follow.

    "I'm excited to see the impact the inclusion committee, with the support of Simon and wider executive team, will have over the next 12 months towards helping ensure that everyone at Arco can feel like they belong."

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  • Arco Celebrates Success at East Yorkshire Apprenticeship Awards

    20 September 2024

    Arco's Chelsea Baxter has been named Advanced Apprentice of the Year at the inaugural East Yorkshire Apprenticeship Awards, with Arco runner-up in the Large Employer of the Year category.

    The awards, which celebrate apprentices, employers, colleges, trainers, and supporters across the region, were held last night at the MKM Stadium in Hull.

    Chelsea, an E-Procurement Analyst at Arco, picked up the win after recently completing her Level 3 improvement technician apprenticeship with distinction.

    Chelsea said: "It's scary going back into a learning environment so long after finishing university in 2014, but I had fantastic support from Arco, particularly from my manager Paul Burton, which made it not so scary.

    "The apprenticeship took a lot of work and it's fab to see that acknowledged with this award."

    Arco, the UK and Ireland's leading safety specialist, was highly commended in the Large Employer of the Year award, which was won by BAE Systems.

    Arco's Future Experts programme was launched in 2015 and is an important part of the company's talent development strategy.

    Apprentices benefit from a blend of on-the-job training and formal education, with 100% of apprentices having secured permanent positions within the company after completing their training, and 75% remaining employed at Arco for at least 12 months after completion.

    Arco plans to expand its apprenticeship offerings in the future, increasing the number of higher and degree-level apprenticeships available to employees across the business.

    Darren Ford, Arco’s head of organisational development and learning & development, said:

    "We are so proud of our colleague Chelsea for winning this well-deserved award, and thrilled to be highly commended as a business for our apprenticeship programme.

    "At Arco, we believe that investing in the future means investing in our apprentices. The recognition at the East Yorkshire Apprenticeship Awards is a testament to our dedication to empowering individuals and driving business success through our Future Experts programme.

    "We are proud of what we have achieved and excited for the future of our programme and of our apprentices."

    Find out more about working at Arco

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