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Property sale sends I Grunwerg profit soaring

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I Grunwerg’s 2019-20 financial results reflected the impacts of relocation and the pandemic.

Tableware specialist I Grunwerg has seen a huge uplift in operating profit in its results for the financial year ending 30 April 2020.

The company’s latest annual report, now publicly available from Companies House, show that operating profit rocketed by 704% from £0.2m to £1.9m, due in part to the sale of freehold land and buildings.

However, turnover slipped by 14% from £8.3m in 2018-19 to £7.1m in the latest year.

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MD David Grunwerg wrote in the report: “After more than 30 years in the centre of Sheffield, the business relocated to Sheepbridge Industrial Estate, between Sheffield and Chesterfield. The move, originally planned for the quieter summer months, was advanced to the spring, in a response to an offer made by the purchasers which was alas not honoured.

“The move involved inevitable disruption and loss of business, as well as additional costs of staffing, equipment and transportation costs to transfer all stock. In addition, there were some redundancies and awards to cover. Having said that, the move was achieved very smoothly and efficiently with minimal long-term damage to our business.”

On the impact of the pandemic in the fourth quarter of the company’s financial year, he added: “With the enforcement of a severe lockdown, resulting in the temporary closure of many of our customers in the retail and catering sectors resulted in a substantial reduction of sales of over £0.5m during the final 2 months, March and April 2020.

“Apart from this, trading conditions remained challenging, with fluctuating costs and exchange rates, and intense competition. In light of the above, the company has reported a decrease in turnover compared with the previous financial year.”

There was a big positive for I Grunwerg following the reported financial year though, as Grunwerg detailed: “We managed to achieve a long-held ambition to have our very own base in London for a combined office, showroom and store. We have taken on a long lease for our Santoku store in Belgravia [London], which was formally opened by Michel Roux Jr in September 2020, followed shortly by a visit from Mino.”

Tags : financial resultsfinancialsi grunwergtableware
Clare Nicholls

The author Clare Nicholls

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