New results show losses at caravan manufacturer
As we enter the industry’s new season, our new engineering comes to the fore Chris Short
ANORTH East caravan manufacturer which announced nearly 200 job losses in a difficult market has published results which show growing losses.
Consett-based Erwin Hymer, which makes the Xplore, Elddis and Buccaneer caravan brands, said earlier this year that it was looking to cut 191 posts in a bid to reduce overheads in a declining market.
The company had employed more than 500 people at its Delves Lane operation.
Now the company’s UK operation – part of US group Thor Industries – has published accounts for the year up to July 31, 2023, which show that, while turnover increased from £95.2m a year earlier to £106.4m, its operating losses grew from £4.6m to £5.5m.
In the accounts, managing director Chris Short said the company had had a “challenging business year” and highlighted a previous business restructuring.
He said the company had frozen prices but rising supply chain costs had resulted in a loss.
But he said the company had a strong order book and was committed to innovating in its product range.
Mr Short added that the supply of chassis for its vehicles – which had been highlighted as a challenge in previous accounts – had improved but there was still some uncertainty around supplies for its UK production facilities. He said that the combination of cost increases, general economic conditions and increased interest rates were the main threat to the business.
Mr Short said the challenges facing the company were common to the wider UK caravanning industry and that measures to restore profitability were “crucial to the long-term sustainable future of Erwin Hymer Group UK Ltd.” He said the company was tracking retail sales and stock on dealers’ forecourts, as well as external factors impacting on general recreactional vehicles sales.
He added: “As we enter the industry’s new season, our new engineering comes to the fore, with advanced design reflecting the wants and needs of our customers – in every market segment. In this, our 60th anniversary year, we will unveil our all-new portfolio of vehicles at The Motorhome & Caravan Show at the National Exhibition Centre, Birmingham in October 2024 including class-leading new Elddis Avante touring caravans and innovative new Xplore campervans.
“The new season also sees the launch of all-new Elddis motorhomes, with the debut of our new four-model luxury Elddis Encore range, further galvanizing our motorized portfolio.”