A plastics producer in the North East has increased revenues despite outlining the major disruption caused by the coronavirus pandemic.
Renolit Cramlington, which makes films and other plastic products for kitchen components, has issued accounts for 2020 which show that its turnover increased by around £3m to £75.2m. Operating profit over the same period increased to £9.8m from a figure of £6.8m in 2019.
The improving financial picture came despite the Northumberland firm, which employs around 300 people, saying it was “heavily impacted” by the pandemic, facing an almost total shutdown at the start of the outbreak followed by a rapid return of demand as families in lockdown turned to home improvements.
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The company said it had also suffered from shortages of raw materials, describing its supply chains as being “under particular strain”. It added that it was dealing with increased costs and regulation following the post-Brexit trade deal signed at the end of the year.
In the accounts, director David Hall said: “After a year that involved the coronavirus pandemic and Brexit, the company is still keeping a watchful eye on developments in both these key areas. During the year the impact from the pandemic, Brexit uncertainty and high levels of demand have led to low stocks and increased disruption.
“Over the medium to long term the company will continue to grow the business by remaining focussed on delivering a high quality product with excellent service at competitive prices.”
Renolit’s Cramlington plant is part of a German-based parent group which celebrated its 75th anniversary earlier this year. Its main product line is decorative laminates used for kitchen and bedroom cabinet doors and in mobile homes and caravans. The company also distributes PVC waterproofing materials.
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In the accounts, Mr Hall reveals how the plant was helped by its parent group as it deal with the severe fluctuations of demand during 2020. A dividend of £8m was paid to the parent group, an increase on the £3.5m paid in 2019.
The company added that it had recorded three reportable accidents in 2020, one more than a year earlier. It said: “Focus remains on this area as we strive to continuously improve our management of risks and behaviours”.