Online shopping leads to sales surge for Hull firm
HIT £49.5M FROM £39.9M
ACOMPANY behind the production of supermarket home delivery vehicles has seen sales increase 24 per cent through the pandemic, as lockdown prompted changes in shopping habits.
Hull-based Paneltex saw its turnover hit £49.5m, up from £39.9m in 2019, with growth split equally either side of the Atlantic.
And the team is forecasting a massive further uplift after a strong first half of 2021, pushing sales of the refrigerated vehicle bodies and allied products up a further £20m.
To meet demand investments have been made with headcount up significantly, following on from capacity increases added in 2019, as it entered the year with a strong order book.
They include the acquisition of metal fabrication specialist Phoenix Hull, a neighbour at Sutton Fields; the opening of a new export-focused kit-producing factory there, with capacity for 50 vehicles a week, and the acquisition of a 62,000sq ft warehouse at Kingston International Business Park. To mitigate Brexit impact Paneltex has taken component manufacture in-house too.
In a report accompanying the results, signed off by company secretary Jane Berridge, the directors said: “The initial effects of the pandemic reduced demand for some products while increasing demand for others, principally vehicles for home delivery of food and pharmaceuticals. Flexibility in our manufacturing systems allowed a rapid switch of capacity to these smaller vehicle bodies, including kits for export markets, and despite the many difficulties, turnover increased 24 per cent for the year.”
Staff training to aid productivity and efficiency was canned as new working methods were brought in to stay safe, while supply chain delays were experienced and material price increases also impacted margins.
It saw profits halved from £2.4m to £1.2m in a year of “unprecedented trading conditions”.
Looking ahead, the directors said: “Demand for the company’s products remains at very high levels, with turnover increased further during the first half of 2021 and the outlook for the remainder of 2021 and 2022 is good.
“Continued investment in manufacturing capacity throughout 2020 and early 2021 has given the opportunity for further growth and sales revenue is anticipated to increase by more than 40 per cent over the year. Much of this increased demand is for export van bodywork in kit form and the £2.5m investment in a new production facility was completed early in 2021.
Of the acquisition, which includes the freehold property, they said: “We have used these manufacturing techniques for many years on a sub-contract basis and the new investment will help satisfy increased demand in a challenging environment, as well as providing the opportunity to develop more advanced designs.”
The year saw employees increase from 387 to 459, with the business up to 580 by April as the investments came on line, with a 80 more eyed.