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Classeq believes it can weather economic uncertainty

Classeq Stafford factory-6 crop
Classeq feels it can sustain its business for as long as its markets take to recover from coronavirus.

Warewasher manufacturer Classeq has reported its financial results for the year ended 31 December 2019.

The annual report, now publicly available from Companies House, details that the Winterhalter group brand generated £21.4m in 2019, 4% up on 2018’s £20.5m.

Operating profit increased slightly too, from just under £2.6m in 2018 to just over that figure last year – a rise of 1%.

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However, the group’s finance director David Parsons was realistic about the impact of coronavirus on the current year’s figures, stating: “The recent developments caused by the worldwide pandemic and the resulting restrictions on nationwide domestic and commercial environments have caused significant problems for many businesses, including ourselves. The immediate implications include a substantial reduction in customer demand, the furloughing of the majority of our employees on the government’s coronavirus job retention scheme, and suspension of many of our usual business activities.”

He reported: “We have taken all of the steps we believe are practical and necessary to protect the long term future of the company. Our intention and belief is that we can weather the current economic uncertainty and sustain our business for as long as it takes for our markets to recover from this unprecedented situation. Our markets are predominantly the hospitality and catering industries, which may take longer to recover than other sectors, so we do not expect 2020 to be anything other than a very difficult year.”

Parsons forecasted: “The directors are confident that we have sufficient resources, the necessary financial stability, and the confidence and support of our parent organisation to not only survive, but to be in good shape to resume our position as a major player in our markets when the time comes.”

Classeq is also taking into account possible Brexit impacts, with Parsons concluding: “The company’s contingency plans for Brexit have been updated in line with the ongoing developments in the Brexit process. Now that we are in the secondary phase of the process, we are maintaining our readiness to support our customers through whatever challenges arise going forwards. This includes increased stock holdings, and the flexibility in our supply chain to respond to any unforeseen developments.”

Tags : businessclasseqfinancial resultsfinancialsWarewashing
Clare Nicholls

The author Clare Nicholls

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