The Hexham business hailed strong financial results despite seeing falls in profit and turnover
The Egger works in Hexham.(Image: newcastle chronicle)
Major Northumberland employer Egger says it is “well placed”, despite economic uncertainty and seeing turnover and profits fall. The Hexham business, which employs more than 800 people, manufactures wood panels and flooring for bedrooms, kitchens and offices.
Its materials are used by a range of sectors include the hotel, retail and housebuilding industries. The firm – which forms part of a wider group of companies spread across Europe with its head office in Austria – has spent the last two years weathering challenging trading amidst rising inflation and increased costs, which have impacted profits and sales.
Egger UK has published accounts for the year ending April 2025, showing a 4.1% drop in turnover to £412.2m, as well as a sizeable drop in operating profit from £41.8m to £28.2m. Employee numbers rose from 817 to 844, taking the payroll bill up to £46.8m from £41.9m.
Meanwhile, no dividend was paid to the parent company Egger Holzwerkstoffe GmbН, with the previous year dividends standing at £80m. Financial director Jonathan Tully said Egger UK had “delivered strong financial results for the year”.
In the company report, he said: “Despite the current uncertain economic outlook, Egger UK is well placed to sustain its financial performance based on its mix of customers, investment in employees, ongoing reinvestment in production technologies and product range, and high levels of service in the long term.
“Egger is a leading manufacturer of wood based panel products with production facilities and distribution worldwide. Egger follows a long-term, profitable international growth strategy in which a leading market position and sound profitability creates the foundation for investments and further growth.
The chipboard finishing line at Egger in Hexham(Image: Handout)
“Egger (UK) Limited (Egger UK) produces wood based panels primarily for the UK market and is considered a leading supplier due to high quality, innovative products, cutting edge design, and high levels of service.”
The report highlights ongoing challenges but says the company is well-positioned to manage its risks.
It adds: “Wood is our primary raw material, sourced in various forms including industrial roundwood, sawdust, hack chips, and recycled wood. The increasing demand from the biomass sector is placing upward pressure on both pricing and availability. To mitigate the risk Egger UK continues to enter long-term strategic contracts with key suppliers, as well as backward integration strategy that is in place through its subsidiaries Egger Forestry Limited and Timberpak Limited.
“These measures ensure that Egger UK remains well-positioned to manage supply chain risks while continuing to deliver high-quality, sustainable products to our customers.
“The directors are confident that the company has adequate resources to continue as a going concern. The company has prepared forecasts until September 2026 and the directors are confident that the company will continue to operate through a plausible downside scenario.”
Following publication of the results, Mr Tully said: “EGGER UK delivered a resilient performance in FY 2025, despite continued economic pressures in the UK market. Even in this challenging environment, our financial position remains strong, with net assets rising to £135m, reflecting continued investment in our sites, our technology and our people.
“Throughout the year, we pushed ahead with major development projects and efficiency initiatives that will enhance our competitiveness for the future. While the wider market has faced inflationary pressure and subdued demand, EGGER UK has continued to grow its capability, strengthen its partnerships, and build momentum. Thanks to our dedicated 840 strong workforce and our long term strategic approach, we enter the new year with confidence and a clear focus on sustainable growth.”
