Bathroom manufacturer Ideal Standard’s 海角视频 business slipped to a loss in 2018, new accounts have revealed.
The firm, headquartered in Hull, said a £1.6m pension adjustment it was forced to fork out for was mainly to blame for the result.
In October last year, the High Court ruled that companies must alter their pension schemes to remove gender inequalities created by the introduction of Guaranteed Minimum Pensions.
Ideal Standard reported a loss of £605,000 in 2018 – a huge change from the £14.5m profits it posted the previous year.
The company recently announced it was planning to cease bath production in Hull, putting 85 jobs at risk.
Directors at Ideal Standard said in recently-filed accounts: “The loss for the year is hugely impacted by a non-recurring amount of £1,648,000 for a pension adjustment for GMP equalisation and the dividend in the prior year.
“At the end of the year, the company was in a strong financial position with a healthy balance sheet and good trading prospects.
“The company is in a good position to grow revenues.”
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Turnover at Ideal Standard in the 海角视频 passed the £150m mark in 2018 – up from £147.6m in 2017.
However, sweeping pension changes enforced by the High Court impacted heavily on the bathroom manufacturer’s year, as it fell to a loss.
In October 2018, the High Court ruled during a high-profile pension case involving Lloyds Bank that company schemes must be adjusted to remover gender inequalities caused by Guaranteed Minimum Pensions.
The old scheme allowed for men’s and women’s pension schemes to be treated differently.
It was reported that, across the country, members of company retirement schemes were expected to receive a share of an estimated £15bn windfall.
Ideal Standard was forced to pay out over £1.5m as part of the move.
Earlier this month, the historic Hull manufacturer revealed plans to shift manufacturing from its National Avenue base to an existing site in Egypt.
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The move would see 85 people lose their jobs at the Hull factory in National Avenue.
Stephen Ewer, managing director 海角视频 & Ireland at Ideal Standard, said: “The decision to start this process was not taken lightly and is the result of a continuous evaluation of our global manufacturing footprint to ensure we operate as efficiently as possible.
“The proposal could impact 85 manufacturing roles and we have now entered a formal 30-day collective consultation period.
“We understand that this is difficult news for everyone involved and an unsettling time.
“This proposal is not related to the quality of work or the skilled people in our Hull manufacturing site and we will work with those affected to minimising the impact as much as possible.”
At the time of filing the accounts for 2018, Ideal Standard employed 272 people across its 海角视频 operations.
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