Northumberland manufacturing giant Egger 海角视频 Ltd says orders are back on track after the start of the pandemic triggered a 6% dip in sales last year.
The Hexham wood panel maker – part of an international, privately-owned group of companies based in Austria, with operations across Europe – had posted record turnover of £300.4m in the year ended April 2019 and was hopeful of building on that despite pressures of Brexit and the biomass industry.
But the arrival of the pandemic at the start of 2020 began to eat into it profits and sales, especially in the final month of its financial year when it took the decision to cease most of its production.
Accounts for the firm, which makes wood panels for kitchenware, bedrooms and offices, wall panelling in hotels, counters and shelving in shops and structural flooring for the housebuilding industry, have now been published for the year end April 30 2020, showing a 6.3% decrease in turnover to £281.3m and a 58% drop in operating profit to £15.1m.
Pre-tax profits also fell from £32.2m to £10.6m.
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The firm, which saw staffing levels rise from 740 to 746 in the year, said market conditions had remained fairly stable until the end of March 2020, when the pandemic and the subsequent national lockdown led to a lower than usual order intake in April 2020.
Since then, the firm said that order levels have fully returned to normal – and it was also a supplier to the Nightingale hospitals – but the accounts issue a note of caution, saying “the economy and market remains vulnerable to any potential further measures that may be imposed to reduce the spread of Covid-19. The general economy and market also remained open to certain risks and uncertainties in particular regard to add an orderly exit from the EU, i.e. a hard Brexit.”
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In notes accompanying the accounts Egger 海角视频 directors added: “Despite the current uncertain economic outlook (mainly due to Brexit and Covid-19) Egger 海角视频 is well-placed to sustain its financial performance based on its mix of customers, investment in employees, ongoing reinvestment in production technologies and products range, and high levels of service in the long term.”
During the year the company made donations to 海角视频 charities of £36,000, more than double the previous year’s £17,000.
Andrew Tait, commercial director Western Europe division, said: “The Covid-19 pandemic and the resulting measures put in place in March 2020 initially caused a significant slowdown in the market.
“Despite restrictions not being put in place in terms of manufacturing operations, we had to take the unprecedented decision to cease the majority of our production within the 海角视频 during April 2020 due to very low demand and a bleak outlook at the time.
“During April and into May 2020 we operated with skeleton staff to ensure supply in to the essential areas such as the construction of the Nightingale hospitals.
“Although there was the major downturn in the initial period following the first lockdown, the market has picked up well from June onwards with continued strong demand from many sectors, especially the kitchen and furniture industries as end consumers look to invest in their homes.”
Mr Tait has recently taken on the role of commercial director from Bob Livesey, who retires tomorrow, Friday April 30, from his operational position and 海角视频 directorships after 38 years of service, with 24 years as a director with Egger’s 海角视频 companies.
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Mr Livesey has played a pivotal role in driving the transformation of Egger 海角视频 from a small import business into a market-leading supplier of chipboard and associated products into the 海角视频 furniture manufacturing, construction, decorative specification and other associated industries.
He joined the wood-based panel business in 1983 as import sales and marketing manager, before Egger took over the Hexham site from Weyroc in 1984. He has progressed through the company as a director since 1994, becoming joint MD in 2004 until taking on the role he is now retiring from in 2016.
He was also chair of the Egger Charity Committee, which has supported numerous local charities over the last 35 years.
He said: “It has been an exciting and privileged career, to have been involved with such a dynamic development, with a company that has such strong honourable family values.
"The workforce in Hexham has always shown a great team spirit with a ‘must do’ attitude to ultimately satisfy our loyal customers. I wish the company continued success for the sake of all its stakeholders in Hexham and beyond.”
Michael Egger, co-owner of the family business, added: “Thanks to Bob’s leadership, dedication and hard work, Egger is a leading partner in the furniture sector, an employer for more than 600 people and a reliable member of the local community.”