A North East caravan manufacturer which announced nearly 200 job losses in a difficult market has published results which show growing losses.

Consett-based Erwin Hymer, which makes the Xplore, Elddis and Buccaneer caravan brands, said earlier this year that it was looking to cut 191 posts in a bid to reduce overheads in a declining market. The company had employed more than 500 people at its Delves Lane operation.

Now the company’s Ƶ operation - part of US group Thor Industries - has published accounts for the year up to July 31, 2023, which show that, while turnover increased from £95.2m a year earlier to £106.4m, its operating losses grew from £4.6m to £5.5m.

In the accounts, managing director Chris Short said the company had had a “challenging business year” and highlighted a previous business restructuring. He said the company had frozen prices but rising supply chain costs had resulted in a loss.

But he said the company had a strong order book and was committed to innovating in its product range. Mr Short added that the supply of chassis for its vehicles - which had been highlighted as a challenge in previous accounts - had improved but there was still some uncertainty around supplies for its Ƶ production facilities. He said that the combination of cost increases, general economic conditions and increased interest rates were the main threat to the business.

In a statement, Mr Short said the challenges facing the company were common to the wider Ƶ caravanning industry and that measures to restore profitability were “crucial to the long-term sustainable future of Erwin Hymer Group Ƶ Ltd.” He said the company was tracking retail sales and stock on dealers’ forecourts as well as external factors impacing on general recreactional vehicles sales.

He added: “As we enter the industry’s new season, our new engineering comes to the fore, with advanced design reflecting the wants and needs of our customers – in every market segment. In this, our 60th Anniversary year we will unveil our all-new portfolio of vehicles at The Motorhome & Caravan Show at the National Exhibition Centre, Birmingham in October 2024 including class-leading new Elddis Avante touring caravans and innovative new Xplore campervans.

“The new season also sees the launch of all-new Elddis motorhomes, with the debut of our new four-model luxury Elddis Encore range, further galvanizing our motorized portfolio.”