Gateshead manufacturer Union Electric Steel saw its sales fall by almost £13m last year after the pandemic hit the firm's order book.
Union Electric Steel, which makes rolling mills that are used to flatten and harden metal, saw its revenue drop from £50.6m in 2019 to £37.9m for the year ending December 31, 2020.
But despite the fall in sales, the Gateshead company only suffered a minor dip in its operating profit, which came in at £1.9m compared to £2.2m a year earlier.
In its financial accounts, the company said: "The turnover of the company for the year was £37.9m, a significant decrease on prior year, driven by decreased sales volume as a result of the economic impact of the Covid-19 pandemic.
"Margin was held during the year on the reduced volume due to maintaining operating efficiencies, and support for furloughed staff through the 海角视频 Government's Covid job retention support scheme of £1.7m.
"Other operating income remained stable from the investment in Jiangsu Gong-Chan Roll Joint Stock Company Limited. These aforementioned items lead to the company declaring an operating profit for the year of £1.9m. Other income of £4.6m was seen due to the waiving and termination of a loan outstanding to FCEP Europe BV.
"Order intake decreased from the prior year, as a result of the Covid-19 pandemic, which resulted in the order book ending the year at a level of £41.3m (2019: £68.1m)."
The waiving of the loan to FCEP Europe BV led to the company adding an additional £6.5m in "other income" to its balance sheet. This ultimately boosted the firm's profit after tax to £6.2m.
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The challenges of 2002 also led to Union Electric Steel reducing its headcount during the year. Headcount fell by 13 members of staff over the 12 month period, from 244 to 231. The reduced staffing levels were seen entirely within the production team, which shrunk from 227 people to 214.
Having a smaller workforce led to the company cutting its wage bill, with total remuneration costs falling from £12.7m to £10.7m.
Union Electric Steel has four directors, but only one receives remuneration from the company's accounts. During 2020 the director's pay went up from £96,000 to £119,000.