Warewashing and icemaking appliance supplier, DC Products, has published its latest financial report for the year ending 31 October 2020.
Covering much of the lockdown period, the annual report reveals how much the coronavirus impact has hampered the JLA-owned company.
In the latest financial year, turnover reduced by 37%, from £4.3m in 2019 to 2020’s £2.7m.
Operating profit was cut by a higher rate, declining by 43% from £765k to £432k.
This marks a change in fortune from the past few years, as since DC Products was bought out by the JLA group in December 2017, it had generated continuous financial growth until 2020.
JLA’s CEO Ben Gujral commented: “The group has considerable financial resources, together with significant forecast cash generation from operations. The impact and actions taken as a result of Covid-19 have been group-wide and considered in full. The directors believe that the group is well-placed to manage its business risks successfully despite the current uncertain economic outlook.
“The group has also undertaken reverse stress tests of the forecasts assessing what deviation from budget would be required for the group to run out of cash. The stress testing on forecasts show that the group has sufficient liquidity, and mitigating measures available, to continue to operate in the event of a significant economic downturn.
“The directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future.”