Restructuring efforts at County Durham motorhome and caravan maker Erwin Hymer have led to a substantial turnaround in the business, new accounts indicate.
The Consett-based manufacturer says the year to the end of July 2024 brought about a recovery following measures to control materials and operating expenses, and develop gross margins. Newly published accounts for Erwin Hymer Group º£½ÇÊÓƵ include a 3.5% increase in turnover to £110.1m, and a narrowing of operating losses from £5.5m to £1.3m.
Separately, though not shown in the accounts, the firm pointed to a £2,000 Ebit profit during the year compared with a £5.5m loss in 2023. It said last year's pre-tax loss of £2.9m was a result of one-off restructuring costs and the impact of an intercompany loan in what would have other otherwise been a breakeven year.
Erwin Hymer had faced challenges when demand for caravans and motorhomes spiked during Covid, deviating from an otherwise long term decline in the market. The firm had struggled to build enough vehicles to put in front of buyers on forecourts and suffered some loss of market share through 2022 and 2023 as a result.
But a restructuring that included the shedding of nearly 200 jobs at the Consett factory has reset the business which, since 2024, is said to have been increasing market share month-on-month, including in the caravans market where it has moved from single figures to around 11% market share and in the motorised market - covering motorhomes and campervans - where it has moved from single figures, towards 20%. The Delves Lane plant has also cleared backlogs, putting more of its Buccaneer, Eldis and Xplore products, among others, on the market.
The now 400-strong workforce at the site is working a four day week consisting of elongated days Monday to Thursday - a move which is said to have boosted staff satisfaction. The accounts also show strides in improving annualised staff turnover rate.
In a review attached to the accounts, the company said: "Erwin Hymer Group º£½ÇÊÓƵ returned to a sustainable profit position in Q3/Q4, even with ongoing high material costs and rising labour inflation rates, specifically relating to the national minimum wage. These improvements were a direct result of work carried out across all aspects of business waste, identified through our cost of failure programme. Initiatives such as Kaizen, lean tools and quality circle, have helped deliver these sustainable improvements.
"Ongoing work with our supply chain partners on all aspects of quality, cost and delivery is now vitally important and will continue throughout 2024/25 and beyond, it is clear that high product pricing across the industry is playing a major factor in the downturn of the market, specifically touring caravans, therefore it is vital that we work to drive our material costs down if we want to see ongoing volume improvements.
"Working closely with our excellent dealer network, controlling forecourt stock levels and being relentless in product quality improvements, have all played a huge part in delivering a positive market share trend across the second half of 2023/24, in all product segments. The team are now excited about 2025 season and the following years, a detailed three year strategic plan, strong orderbook and innovative new product roadmap, combined with improved business processes creating a strong foundation for growth, will all help towards delivering ongoing financial and non financial business results."
Erwin Hymer Group º£½ÇÊÓƵ Ltd is part of US-based RV giant Thor Industries, which also owns brands such as Airstream and Starcraft.
