Gloucester-based distributor, Space Group, has revealed its financial results for the start of the pandemic period.
The Nisbets-owned kitchen design house posted a £14.6m turnover for the 12 months ending 31 December 2020, which was a 33% reduction from 2019’s £21.8m.
Operating profit was also hit during this time by 74%, with £245k earned in 2020 compared to £949k in 2019.
MD Ian Bidmead told Catering Insight: “We were very pleased with the resilience showed by the business in still delivering a reasonable operating profit during an exceptionally challenging trading backdrop.”
Within the annual report, publicly available on Companies House, he analysed: “The company’s sales to hospitality customers and main construction contractors were inevitably impacted by Covid-19, with some mitigation from non-hospitality sales. Gross margin increased marginally by 1.3% to 32.1%, reflecting the change in customer and category sales mix. Administrative costs decreased by £721,536, leaving operating profit 74.2% lower at £245,334.
“In view of the very challenging trading conditions caused by the global Covid-19 pandemic and the uncertainty in the run-up to Brexit, the company traded satisfactorily during the year. The company showed significant resilient with turnover decreasing 33% despite three lockdowns and significant disruption to the hospitality and construction sectors. The business took all reasonable steps to reduce costs in the wake of such a significant reduction in revenue whilst retaining the potential to respond to increasing demand as the hospitality sector re-emerges post Covid-19.”
Bidmead also stated how Space managed throughout the pandemic period: “The company acted quickly to mitigate the trading risk by launching new products linked to the pandemic, pivoting to sectors less affected by lockdowns, such as grocery retail, and continuing to focus on understanding our customers’ buying behaviours and needs.”
While he concluded: “Our customer diversification, rapid new product introduction, breadth of services, in-house manufacturing capability and market-leading range will allow us to trade successfully through this period of volatility. This is founded on the resilience, commitment and capability that our colleagues have demonstrated throughout the course of the year, for which we thank then.”