Caravan and motorhome manufacturer Erwin Hymer said it is investing to take advantage of strong demand, following a year in which Covid-19 impacts and component shortages saw it shed 14% of its production staff.
The Consett based business, which is home to the Elddis, Compass, Xplore and Buccaneer brands, has previously told how it was impacted by the pandemic, enforcing a four-month closure of the factory. Newly published accounts covering the year ended July 31 2021 show how it maintained turnover at the business, chalking up £101.8m in the year compared to £103.3m in 2020.
A geographical breakdown of turnover also showed that 海角视频 sales rose slightly from £99.47m to £99.84m, as the staycations market soared, but in Europe sales dropped from £1.115m to £797,508, and in the rest of the world market from £2.69m to £1.2m. Pre-tax profits dropped from £3.7m to £2.4m as the firm’s activities were curtailed by the Covid-19 pandemic.
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Operating profit also fell, from £3.82m to £2.46m, and total comprehensive income for the year dropped from £2.83m to £1.54m. In the period the firm also saw a 9% drop in its average workforce, which fell from 554 to 502. It increased the number of admin employees from 59 to 78, but had 71 fewer production workers, with the average number going from 495 to 424.
In a report accompanying the accounts, directors said: “Business activities of the company were impacted by global supply chain restrictions arising from on-going consequences of the Covid-19 pandemic. This necessarily limited sales during an otherwise buoyant market. Despite these supply chain impacts, the business continued with its product development plans and was able to introduce new models for the next financial year.
“The business continues with a strong order book underpinned by good market demand for its products, and the company has therefore been able to continue to trade profitably during the financial year 2021/22. The company continues to benefit from good market demand for its products and the directors remain confident that the company is well placed to deal with any further uncertainties related to component supply due to its strategic stock holding and manufacturing flexibility.”
Following the year end, in September, Erwin Hymer revealed in The Journal how a £15m investment was being made at the County Durham plant, which would also create 200 new jobs. The company partnered with a North East recruitment process outsourcing business to fill the jobs within production and warehousing.
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In the latest accounts report, dated July 29 2022, the firm tells how it is using the investment.
The report said: “As in previous years, the company continues with its strong commitment to creativity and innovation across its product range. Opportunities arising from being part of the largest global recreational vehicle manufacturer have allowed further unique developments for 2022.
“The company is continuing with a period of significant investment in its production facilities in order to expand capacity and continue with its long-term growth plans. The company expects a full recovery in retail demand, although the timing remains uncertain. However, the company believes it remains well placed to take advantage of its opportunities and manage its business risks successfully.”
Erwin Hymer Group 海角视频 Ltd is part of the larger, European-wide Erwin Hymer Group, which in turn is owned by the American RV giant Thor Industries.
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