Directors at construction specialist Miller UK said they are well placed to get through the Covid-19 crisis, despite the challenges ahead.
The Cramlington company, a manufacturer of earthmoving attachments which are sold around the world, has published accounts for 2019 which outline the firm’s financial performance as well as action taken since the coronavirus pandemic struck.
The firm saw turnover drop 6.8% from £25.035m to £23.44m, while operating profit also fell from £1.82m to £1.31m and pre-tax profits fell from £1.62m to £1.15m. Overall, the firm’s profit for the year rose marginally from £1.57m to £1.58m, as the result of a £438, 260 tax credit.
The accounts also show the firm, which had 144 employees in the year, recorded R&D costs of £502,873, almost double the prior year’s spend of £252,023. Its total equity now stands at £8.3m, up from £6.7m. No dividends were paid during the year.
Directors said they were pleased with the firm’s performance last year, adding: “At this stage it is impossible for anyone to forecast was even a little certainty as to what the mid-to long-term effect of the crisis will be.
“As such, the directors have focused on the short term to ensure that it is as well-placed as it possibly can be going forward.
“The company was pleased with the trading profit posted in 2019. This came on top of good results in 2018 and alongside a change of bank facilities had left the group with considerable cash headroom as it entered 2020. The company will be profitable through the first six months of 2020 and has generated cash.
“Alongside this positive trading position the company has secured additional cash facilities via the UK government’s CBILS loan offering, taken advantage of the Government Furlough scheme to avoid laying off any staff, rescheduled loan and finance repayments.
“The result of these actions alongside the ongoing government support on the furlough scheme has meant that the company has immediate availability of sufficient cash to trade through the next 12 to 24 months.
“Whilst the directors are aware that the next 12 months will prove a challenge they have no doubt that if required the company can be restructured to deal with whatever sales levels exist.”
