The County Durham firm closed a production line and hopes to have turned the corner on a ‘challenging’ period
John Elliott, chairman of Ebac(Image: Ebac)
County Durham electrical appliance manufacturer Ebac expects future years to be more profitable after closing a production line, accounts show.
The company, which makes washing machines, dehumidifiers, water coolers and heat pumps, has published accounts for 2024 showing turnover fell from £17.7m to £15.9m.
In the accounts report, directors said 2024 was “another challenging year” but told how they took action.
The report, signed off by founder John Elliott, said: “The business made the decision at the end of 2024 to close one of its production lines producing loss making products. This has resulted in the write down of fixed assets (£1,038,363) and stock (£814,898) giving additional provisioning totalling £1.8m (closure costs) which were charged in the year.
“This will mean that future years are more profitable, and we expect only a small loss in 2025. In addition, cash flows will be enhanced in 2025 and beyond. We are pleased to note that no further cash had to be injected into the business in 2025 by the shareholders and the business at the time of writing has adequate cash headroom.
“Sales were 10% down on 2023 representing a temporary lower demand for water coolers, 2025 sales returned to 2023 levels. Gross profit percentage after the removal of closure costs was slightly down on 2023 due to sales mix.
“Operating loss before closure costs was £700,000 worse than 2023 represented by lower sales volumes and slightly lower GP percentage. The directors are now convinced that the business is in a much stronger position post reorganisation, and are now in a position to concentrate on rebuilding the business.”
Operating losses, including the closure costs, widened from £1.5m to £4.1m and the overall loss grew from £2.5m to £4.9m. The firm, which had an average of 157 staff in the year, down from 188, also had net stock impairment losses recognised of £1.172m
Ebac has been focusing on investing in new products, including its domestic heat pumps suitable for the average UK home, and following the period end, during 2025, it said relationships have been built with distributors of the new heat pump products and the loft mounted dehumidifiers.
A new range of dehumidifiers were also launched last year, and directors said they expect much stronger trading figures “in 2026 and beyond”.
The accounts add how a new management team was recruited during 2025, including a new chief financial officer, and directors “believe that these new positions will have a significantly favourable impact upon future revenues and profitability”.
