City briefs: Gear4Music; Croda; and more
Online retailer of musical instruments and music equipment, Gear4Music, has seen its total sales increase by 9% to £120.3m (FY19: £109.9m).
The York-based company has today released a year-end trading update covering the 12 months to 31 March 2020.
Over the same period it recorded EBITDA of not less than £7m (FY19: £2.3m).
Company chief executive officer, Andrew Wass, said: “I am very pleased to report that we have achieved our primary FY20 objectives of improving our operational strength and driving efficiencies in order to restore gross margins, resulting in record profits for the Group.
“FY21 has begun with operational challenges relating to COVID-19, and our focus has been on protecting the health and safety of our employees, whilst ensuring service levels are maintained for our customers.
“I am extremely grateful for the extraordinary hard work and commitment our teams have demonstrated, which has allowed us to successfully satisfy the high demand we have encountered since late March, as an increasing number of people recognise the benefits that playing musical instruments can bring during these difficult times.
“We remain confident our business is appropriately configured to achieve long-term profitable growth, and that we are in a strong position to build upon the excellent progress we have made during FY20.”
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East Yorkshire-based speciality chemical business Croda says it has managed to keep all 19 of its principal manufacturing sites operating, despite the virus outbreak.
The business says it is adhering to Government advice to safeguard the health of its employees, adding its continued activities reflect its “critical supplier position” to a number of industries including health care, crop care, cleaning and sanitisers.
Croda’s update adds: “Our business continuity plans have been fully mobilised and are operating well. We currently have no plans to furlough or reduce pay for employees.
“As the second quarter commences, whilst conditions in some markets are more variable than usual, the value of our customer order book remains solid and in line with normal circumstances.
“However, visibility is limited and there is uncertainty as to how the COVID-19 crisis will affect future sales.
“Whilst we continue to invest in organic opportunities to grow the business for the future through our ongoing capital expenditure programme, we are implementing discretionary operating cost savings and have the capacity to adjust further to meet changing circumstances.
“The liquidity and business profile of the Group is strong. We have undertaken extensive scenario testing, factoring in a variety of potential outcomes, which indicate the Group has sufficient liquidity to absorb an extended period of uncertainty.
“The Group has a strong balance sheet, having completed its debt refinancing in 2019, with no material debt maturities falling due before 2023.”
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Sheffield-based advanced security and surveillance business, Synectics, reports a solid cash position and measures in place to ensure it remains financially sound during the ongoing crisis.
The Group’s available consolidated net cash balance was £3.3m as of 20 April 2020, with confirmed facilities of £5m in place if required.
The Board has take advantage of the Government’s Job Retention Scheme to protect jobs, with 30% of the company’s UK workforce having been furloughed in two tranches during April.
Synectics’ update adds: “All the company’s business units are currently operating, but at significantly reduced levels of activity in every sector and geography.
“Reasonable levels of design and planning work are continuing for projects now expected to proceed later in the year than originally anticipated.
“Planned investment in software development continues, with only limited impact as a result of COVID-19.”
David Coghlan, chairman of Synectics, said: “Synectics is a global business with a solid balance sheet, and we have taken immediate measures to contain costs and protect our financial position.
“The company fills a number of important roles in the wider security and surveillance industry.
“The Board is determined that Synectics will maintain its skills, resources and product development momentum and, by doing so, be well-placed for new opportunities that will undoubtedly emerge as we reach the other side of the current hiatus.”
