Lincat has released its latest financial results, covering the majority of the pandemic period.
In the year to 2 January 2021 the Lincoln-based catering equipment manufacturer generated £34.1m, 26% down on the previous year’s £45.9m.
Operating profit was likewise hit by coronavirus effects, falling 34% from £12.5m in 2019 to £8.3m last year.
In the annual report, now publicly available on Companies House, Lincat’s finance director, Jonathan Dove, stated: “Given the catering industry was severely impacted by the effects of the Covid-19 pandemic, the directors are satisfied with the results for the year.”
He reviewed the pandemic’s effect on the business, detailing: “A significant part of the company’s trade comes from the commercial catering sector, which has been severely affected by the Covid-19 pandemic since March 2020.
“Although the catering sector started to re-open from July 2020, the short to medium term effects of the pandemic on the sector and on the wider economy remain uncertain. The company has responded with robust measures to minimise the impact of the pandemic on the business. These measures have included scaling back production, furloughing employees under the UK government support scheme, cutting back non-essential expenditure and carefully managing working capital.
“In addition, new product ranges were developed and launched which helped to maintain turnover. The company has remained profitable throughout the pandemic and has maintained a sufficient level of cash reserves.”
Dove continued: “During the year the company devoted resources towards research and development activities which have contributed to the quality and competitiveness of the company’s products. The directors will continue to encourage well directed expenditure in this area.”
And on Brexit, he analysed: “The company is exposed to risks associated with the exit of the UK from the EU. Measures have been taken to mitigate these risks. Stock levels of key components sourced from the EU have been increased and arrangements have been made to accommodate the change in status of movement of goods from the EU to the UK.”