County Durham manufacturer Ebac has hailed a 34% rise in sales of its washing machine sales in the first year of the pandemic, which triggered overall losses of more than £2m.
The Newton Aycliffe firm, which makes electrical appliances including water coolers, dehumidifiers and washing machines, has posted accounts for the year ended December 31 2020, showing turnover dropped from £17.7m to £16.8m, and its operating losses widened from £1.28m to £2.38m.
The previous year’s Ebitda of £1.57m was converted to a loss of £1.136m, accounts for Ebac Ltd show, and the overall profit of 2019 of £632,892 dropped to a loss of £2.19m.
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Within the accounts report, chairman John Elliot said sales of watercoolers were affected as many people switched to working from home.
However, washing machine sales were up by more than a third, 34%, and work is now being carried out to take the products into new markets.
The company, which first produced domestic dehumidifiers in 1980, said it has now made and sold more than one million dehumidifiers, but added that unit sales fell significantly as a result of the Covid-19 pandemic.
It also said unit sales of watercoolers to Europe were badly affected by the pandemic, with the company achieving similar global unit sales to 2019, with the deficit in European sales being offset by increased sales to the US.
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It added: “With many European administration staff working from home due to the pandemic, sanitisations in offices were reduced by our customers, hence Watertrail sales volumes dropped by 24% compared to 2019.
“Research and development remains focused around improving product performance, in addition to investigating new methods of filtration and dispense to further improve the sanitisation process.
“Throughout 2020 the company continued to promote its range of washing machines, achieving an increase in unit sales volume of 34% over 2019. Where possible, the company seeks to develop products optimised for the British public and uses patents to protect its innovations.
“Ebac operates in established markets that are unlikely to change significantly. To maintain the turnover within these markets, regular review of product ranges against the competition will be essential to maintain market share.
"Some growth can be achieved in the core markets, but for significant growth the company seeks to move into new geographical markets with its existing ranges and continue to develop new markets with its laundry products.
"Having been through a period of investment in recent years, the company is operating in established markets and its reserves position remains strong.”
Following publication of the accounts, Ebac chairman John Elliot said he was excited by future opportunities.
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He said: “This recent accounting statement is historic and represents the first part of a period of extraordinary turbulence in the global markets caused by the pandemic. On a positive note, recent trading has been much easier.
“Although the problems continued into 2021, in recent months we’ve returned to profit. We have continued to invest in product development and there are exciting times ahead.
“The investors in the business, mostly Elliott family members, have been determined to invest in the business and take the losses in the knowledge that the products are good, and the workforce is determined, innovative and capable.
“New product development is especially exciting. We’ve been involved in heat pumps for 30 years and we intend to bring a new efficient and affordable product to the market soon. The innovation involved in our current products means they all excel in energy efficiency. Our patented smart control on dehumidifiers reduces running costs by about 30%, and Which? recently ranked our washing machine as the most energy efficient.
"New products, realistic shareholders who are willing to invest, and a recent return to profit, all bode well for the future.”
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