Fluctuating copper prices have been blamed on a fall in profits at Teesside-based Cleveland Cables.
Whilst the price of copper has since stabilised, turbulence in the market during much of early 2020 saw pre-tax profits at what is the 海角视频鈥檚 largest supplier of electrical cables and accessories, fall 17% from 拢15m to 拢12.4m in the year to April 30, 2020.
It is the second year in a row that profits at the global firm owned by Teesside鈥檚 richest brothers Alastair and Michael Powell, have been hit.
Turnover in Cleveland Cable, which has its headquarters on Middlesbrough鈥檚 Riverside Park, also fell from 拢263.4m to 拢250m whilst the headcount dropped from 526 to 483.
Director Alastair Powell said results were in accordance with expectations and that the financial position at the end of the year 鈥渋s considered to be satisfactory. The principal risks and uncertainties facing the company concern the price of copper.
鈥淭he company is not vulnerable to interest rate fluctuations as it has no borrowings. Foreign exchange rate fluctuations have not had a material effect on the company鈥檚 operating results.
鈥淧rofitability has reduced mainly due to less favourable copper price movements.鈥
He said that cash reserves had remained stable and added: 鈥淚t is hoped to sustain the trend of healthy profitability, and to date this has been the case during the post balance sheet period when profits have once again been buoyed by favourable copper price movements.鈥
The accounts cover only the first few weeks of the first coronavirus lockdown. But Cleveland Cable warned of the pandemic鈥檚 potential impact on its business in the current financial year.
It said that the company had determined that 鈥渢hese events are non-adjusting subsequent events. Accordingly, the financial positon and results of operations as of and for the period ended 30 April 2020 have not been adjusted to reflect their impact.
鈥淭he duration and impact of the Covid-19 pandemic, as well as the effectiveness of Government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the company for future periods.鈥
The Powell brothers set-up Cleveland Cable in 1978 and have grown it into a global concern with a branch in Dubai to serve the UAE market, and depots in Newcastle, Aberdeen, Warrington, London, Milton Keynes, Glasgow and Bristol.
The cables are used in challenging environments from security systems to underground signalling and offshore communication.
According to the latest Sunday Times Rich List 2020, the Powell brothers have an estimated fortune of 拢535m 鈥 a rise of 拢20m on the previous year.
The siblings have adopted a low profile but are known for their charitable works with Alastair Powell recognised in 2018 with a Teesside Hero Award.
