Pre-tax losses have increased at the UK arm of domestic appliances manufacturer Hoover, which has operated from a facility in South Wales since the 1940s. However, the company said 2015/16 had started “very well” with turnover continuing to grow.
According to accounts for Hoover Ltd, covering the 18 months to 30 June 2015, the company posted a pre-tax loss of £6.2m on turnover of £240.6m.
This compares to its previous accounting period, covering the year ending 31 December 2013, when a pre-tax loss of £771,000 on £172.4m turnover was reported.
The average number of staff employed during the period grew to 527 from 479.
Hoover has changed its accounting reference date during the year to put it in line with its parent company.
Hoover said selling and distribution costs had increased, primarily due to integration of certain assets and liabilities of Baumatic, who Candy Hoover acquired a couple of years ago after it entered administration in 2013.
It also incurred costs of £13.3m, compared to £9.4m in 2013, in relation to the accounting for defined benefit pension schemes.
In their report accompanying the results, the directors said: “The 2015/16 year has started very well with turnover continuing to grow in the UK, although since the start of 2016 we have seen sterling weaken compared to the euro and dollar which have increased the cost of our products.”
Or, maybe there’s just not enough profit margin in what Hoover is doing, just maybe.
Hoover became part of the Candy Group in 1995 after it was acquired for £108m.
