Revenue at tile-maker Johnson Tiles has fallen by more than 12 per cent – despite the firm axing 140 staff in a cost-cutting restructuring programme.
For the 12 months to March 31, the North Staffordshire firm’s turnover dropped to £41.4 million – 12.1 per cent lower than last year’s revenue of £47.1 million.
The decreased revenue comes on the back of a restructuring programme in 2017 which saw the firm reduce its workforce by a quarter – to ‘significantly’ cut costs.
It also comes after Johnson Tiles to boost manufacturing at its Stoke-on-Trent headquarters.
Despite disappointing revenues at the firm, group chief executive Nick Kelsall believes the restructuring programme has produced a number of ‘benefits.’
He said: “As previously reported, a major restructure programme was implemented. Through existing low margin business and cutting overhead costs, margins have improved and the business has returned to profitability from loss-making in the previous year, resulting in a significant turnaround in performance in the year.
“The Johnson Tiles customer focused service model, coupled with market-leading specification expertise, has led to good progress in the house builder and specification market.”
In contrast to Johnson Tiles, sister company – Norcros Adhesives which is based on the same Tunstall site – enjoyed increased revenue of £11.3 million – up more than 24 per cent from £9.1 million in 2018.
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And as a group, Norcros plc which also owns the Triton, Merlyn and Vado brands, recorded its tenth consecutive year of growth.
Revenue is up 10.3 per cent to £331 million from £300.1 million in 2018 while pre-tax profit jumped by 24 per cent to £32.6 million from £26.3 million the previous year.
Chairman Martin Towers said: “I am delighted to announce that Norcros has recorded another year of growth despite uncertain economic and political backdrop in our two main markets.
“This reflects the resilience of the group’s business model and the success of our acquisition strategy.
“It also represents the group’s tenth consecutive year of revenue and underlying profit growth, which is a testament to the management team, the strategy and its highly successful execution.
“Whilst market conditions are likely to remain challenging, the board is confident that these attributes will continue to drive market outperformance leading to further progress in the current year.”
Mr Kelsall added: “Whilst the 海角视频 market remains challenging with the Brexit outcome and the fragile political situation impeding activity levels, the strong performance of Triton and Merlyn in combination with a return to profitability of Johnson Tiles 海角视频, together with the further development and progress in our other 海角视频 brands provides confidence that the business is well placed to capture further growth opportunities as they arise.
“The markets in which we operate in the 海角视频 and South Africa remain highly fragmented and continue to provide excellent organic and acquisitive growth opportunities.”