ULSTER Carpets has seen a near £7 million profit from the previous year pulled from under its feet as the pandemic plundered its key markets in hospitality and cruise ships.
Its latest set of accounts filed with Companies House reveal that, in the year to March 31 last, its bottom line profit came in at just £117,700 compared to more than £6.7 million 12 months earlier.
Its sales over the period fell by 3 per cent from £74.3 million to £72.2 million.
And its cash reserves also shrunk, down from £23.7m to £17.8m, although this is largely due to its cash acquisition of cash-strapped Axminster Carpets' underlay business Axfelt in February last year.
Since its accounts were closed, the Craigavon firm undertook a review of the business in the wake of the pandemic impact, and entered into a formal consultation with unions to lose 70 jobs.
That review covered all levels within the company and affects all parts of the group across the world (Ulster Carpets had 672 staff on its payroll at March 31, with 300 in Portadown and the remainder across its operations in London, Paris, Dubai and across the USA).
In a statement accompanying the accounts, chairman John Wilson said: "As we entered the fourth quarter, we were expecting a solid year of trading, albeit down on the two previous very strong years.
"The global impact of Covid-19 was becoming very apparent by February, but the true size and scale was hard to envisage, and we responded rapidly and effectively and with strenuous efforts to maintain the strength of the balance sheet."
He added: "The group has weathered the initial storms and retained its solid cash reserves through careful cost controls and a reduction in non-essential spending.
"Going forward, the market outlook seems to be split into two. Retail markets in the UK and Europe have returned very strongly, but the contract markets are less certain in keeping with the effects of the pandemic on the hospitality sector.
"It is impossible to predict how things will pan out in the next six months apart to say it is unlikely to be straightforward."
Whilst the retail business has recovered well, the onerous restrictions placed on international air travel is likely to impact the firm's key markets for the foreseeable future.
In addition to its main production plant in Portadown, the Ulster Carpets Group also incorporates technical textile machinery manufacturer Griffith Textile Machines (GTM); wool processing and dyeing company Ulster Yarns; specialist commercial carpet manufacturer Danfloor; luxury interiors brands Roger Oates and Mourne Weavers; and the recently-acquired Axfelt in Devon, manufacturers of a fully sustainable underlay.
Established in 1938, Ulster Carpets remains family-owned and has grown to become the premier supplier of Axminster and Wilton carpets to the residential, hospitality, marine and casino sectors across the world.
