County Durham metal manufacturer Hydram Engineering said it expects to see revenues rise next year despite continuing supply chain challenges.
The Ferryhill company, which specialises in sheet metal fabrications, was established more than 40 years ago and works with the likes of Hitachi Rail, Komatsu and Mitsubishi, making and supplying metal components and assemblies.
Accounts for the year ended March 31, 2021, have now been published, showing a 15% fall in turnover from £18.64m to £16.2m, although operating profitability remained stable at £1.61m.
Read more : go here for more North East business news
The firm highlighted lower employee costs as well as Government grant support of £1.162m. Average monthly employee numbers dropped from 279 to 242 during the year.
But managing director David Greatorex said that supply chain pressures have been an issue through the year.
In a report accompanying the accounts, Mr Greatorex said: “The year to 31st March, 2021, has seen a reduction in revenue on the previous year. This reduction was as a direct result of the impact of the Covid-19 pandemic.
“Profitability remained in-line with FY2020 despite the lower revenue. This was due to reduced employee costs, improved efficiencies and Government support through the CJRS grant.
Most Read
“The business remains in a strong financial position with a robust customer base across a diverse range of sectors. Despite the uncertainty caused by Covid-19 the workforce remains highly motivated.
“To date, the impact of Brexit on the business has been minimal. However, the impact of Covid-19 has had a direct impact on revenue in quarter one of FY2021.
“While demand recovered through quarters two and three, the supply chain issues, largely created by the pandemic, will continue to challenge the business in FY2022.
“The board continues to be vigilant and will review the business strategy, to meet these challenges. Covid-19 was an unforeseen risk. There remains uncertainty around the impact Covid-19 will have on the wider economy.
“The board will take all necessary actions to ensure the long-term future of the business.
“The economic outlook for the next 12 months is improving, with customers indicating strong demand. The short to medium-term economic outlook will be determined by the ongoing pandemic and associated supply chain issues.
“Notwithstanding this, the board are expecting an increase in revenue for FY2022.
Don’t miss
“Despite the short-term uncertainty, the board are confident about the medium to long-term future and will be continuing to support key capital equipment purchases, training and improving efficiencies over the next 12 months.”
You can join the BusinessLive North East conversation on and