Worcester-based domestic appliance manufacturer GTech is emerging from a difficult trading year, but says it has adapted its strategy and the outlook for 2019 is to maintain turnover at around £80 million with net profit returning to above 10 per cent by the final quarter.
Turnover dropped from nearly £120 million in 2017 to just over £93 million in 2018 and the profits of more than £15 million in 2017 dropped to a loss of around £2.6 million last year.
The company, which continues to be self-funded, maintains a strong balance sheet and ample cash reserves for its operations.
After five years of rapid growth, including some over-trading in 2017, a restructure was required in 2018. While trade remained good in 2018, turnover reduced and spending increased dramatically, the company’s annual report and accounts confirm.
In 2018 the company moved warehouse and changed its international strategy. GTech closed down its Chinese subsidiary this year. The restructure was undertaken in the final quarter of 2018, incurring further one-off costs, but has already proved successful the company says, returning GTech to a healthier profit and loss.