Review of the business under way at loss-making Toye & Co
BIRMINGHAM medal maker Toye & Co – one of the city’s oldest manufacturing firms – has had a tough six months of trading. This morning it reported a £265,511 loss.
In announcing its results for the six months to June 30, the firm, which also makes military and masonic regalia, badges and related textiles, also reported turnover is markedly down on the same period last year, from £5,476,188 to £3,403,788.
The £265,511 loss compares to a £527,559 profit this time last year.
In a statement the company said the results are disappointing although it points out that that last year’s results were boosted by the income from one large contract that generated turnover of £1,955,450.
“It has continued to be extremely challenging to achieve sales in our traditional markets and this will be reflected in our end of year results,” the firm said.
“Trading in our traditional UK markets continues to be reduced compared to previous years. The sales team is working hard to compensate for this by concentrating on increasing sales overseas. However the results from this will not be seen in the short term.
“The nature of our business means that there is a great deal of development in terms of design, sampling, quotation and bid submissions before a contract is awarded, delivered and payment received.”
Staff at the frim are now working a 34 hour week.
In January Toye & Co entered into an unconditional loan facility agreement, legal charge and conditional sale agreement to dispose of its leasehold property at 19-21 Great Queen Street in Birmingham to Stability Investments for a consideration of at least £2,750,000.
The loan facility agreement provides that Stability Investments advances to Toye & Co an amount of up to £2.5m.
Some £2m of the advance has been used to repay debts to Lloyds Bank
and to meet the working capital requirements of the firm.
Two representatives of Stability Investments, Robin Edwards and Robert Luck, have been appointed as non-executive directors of Toye & Co.
The arrangement with Stability Investments included the development and implementation of a business plan.
Toye & Co said this is in the process of being prepared and will consider the group’s structure and cost base and include a review of the markets it services.
“The aim is to create a business that can be more adaptive to market conditions,” it said.