Construction slump dents JCB dealer
THE slowdown in the construction industry has forced Greater Manchester JCB dealer Gunn JCB to cut jobs.
According to the group’s latest filed accounts it has carried out a review of the business following a “rapid fall in demand” for its products.
Gunn enjoyed strong growth in 2007 and made a good start to 2008 but the economic crisis had an immediate impact as building firms saw orders dwindle.
“Actions have been taken to reduce costs within the group significantly which unfortunately has led to job losses,” said the report which did not detail the scale of redundancies at the Altrincham-based company.
Turnover for the year to December fell by 8.5% to £78.3m. The group recorded a pre-tax loss of £356,000 compared with a £1.4m profit last time. The directors did not propose a final dividend.
Since the year-end Gunn has agreed a new banking facility with Barclays which it said, “will ensure the group will have sufficient financial resources to continue to deal with the current economic environment.”
Privately-owned Gunn was formed around 1890 and became one of the first UK JCB dealers in 1958. It is now one of the largest in the world. It sells new and used JCBs as well as parts from 10 depots.
