North East-based kitchen manufacturer Nobia has revealed the impact of the coronavirus after posting accounts that showed a steep drop in revenues and a 拢30m loss.
The Darlington firm, which trades under the Magnet brand, has released accounts for 2020 which show that its revenues fell by more than 拢95m to 拢394.1m. Over the same period, the company posted an operating loss of 拢30.3m, having seen an 拢18.0m profit a year earlier.
Nobia said its sales were 鈥渃onsiderably weakened鈥 by the pandemic, which led both to the closure of its Magnet stores and production delays. Sales to social housing providers also suffered as councils pushed projects into 2021.
The company said that it had benefitted from the Government鈥檚 furlough scheme - claiming 拢9.9m - and had also taken advantage of the deferral of VAT and payroll taxes to aid cash flow during the year.
But it also said that the demand for new housing and direct sales to builders were proving resilient and added that it had adapted its Magnet stores and improved loyalty schemes to better cater to builders. Its financial position remained 鈥渟trong鈥, with net assets of 拢134.9m, the company said.
In the accounts, chief executive Dan Carr said: 鈥淲e have never experienced a year like 2020, facing into new and unusual business situations.
鈥淭he pandemic impacted the entire value chain, from suppliers to customers, and brought health and safety to a new level. Overnight we went from a situation with healthy demand and a strong order book to a situation with closed stores and factories.
鈥淥ur immediate and ongoing priority is the health, safety and wellbeing of our colleagues, customers and operating in line with 海角视频 Government lockdown regulations. I was delighted with how rapidly the entire organisation responded and adapted to this new reality.鈥
The accounts also outline a difficult 2021 for the company, and in a section of the accounts on post balance-sheet events, Nobia said the Covid-19 pandemic had continued to impact on its trading and profitability. It said that its manufacturing facilities had returned to fully operational status but there had been further store closures and sales to social housing continued to be slow.
The accounts reveal that headcount at Nobia Holdings 海角视频 - a subsidiary of Swedish firm Nobia AB, which took control in 2001 in a deal worth 拢123m - fell by 90 to 2,784.
The company runs a number of factories, distribution centres and stores throughout the 海角视频, with its headquarters on the Yarm Road Business Park in Darlington.
