Acorn Stairlifts sees revenue rise to £241.1m

Home stairlifts manufacturer and retailer Acorn Stairlifts is confident of overcoming challenges posed by coronavirus disruption and Brexit after its latest set of results showed it enjoyed another successful year.
Acorn StairliftsAcorn Stairlifts
Acorn Stairlifts

Directors at the Steeton-based firm expressed confidence that Acorn Group can overcome challenges presented by both Covid-19 and Britain’s departure from the European Union, its annual report said.

Group revenue was up by 7.4 per cent to £241.1m for the year ended September 30, 2019, therefore it doesn’t include the impact of the Covid-19 pandemic or Brexit.

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As well as increased turnover, the annual report showed that Acorn’s operating profit was £27.7m, up from £22.2m the previous year.

Joanne Richardson, finance director at Acorn Group, said: “Our latest results show continued sales growth both in the UK and our overseas markets.

“Improved operational efficiencies have positively impacted the overall result, maintaining our market leading position. The Covid-19 pandemic emerged after this results period and the business has had to adapt during this challenging time. However, we expect the effects to be short term.”

The privately-owned business, founded as a one-man operation in Bradford in 1992, now employs 1,588 people worldwide, up by 52 on the previous year.

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More than 500 work at or from its head offices and factory on the Millennium Business Park in Steeton, near Keighley.

The latest figures show that export sales of Acorn’s British-made stairlifts now account for 71.5 per cent of its total turnover as overseas markets continue to expand.

The company exports to around 80 countries worldwide and has wholly-owned subsidiaries operating in North America, Canada, Germany, Italy, South Africa, Australia and New Zealand.

The North American market in particular experienced very positive sales growth during the year covered by the report.

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As part of the essential medical and social care supply chain, Acorn has operated throughout the pandemic, maintaining existing customers’ stairlifts and installing new ones in cases of compelling need.

Looking to the future, Acorn’s board says it has identified two key areas of risk and uncertainty – the impact of the global Covid-19 outbreak and the anticipated effects of Brexit.

Acorn says the crisis is likely to affect next year’s financial figures. However, directors are confident its detrimental impact will be temporary and followed by gradual recovery in 2020 and beyond.

The firm says it is well-placed to meet any challenges with strong cash reserves and no bank debt. Acorn said it has taken steps to strengthen and protect its supply routes into and out of Europe, including increasing stock levels within mainland Europe, to help the firm negate Brexit.

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Although there could be an impact on the European exchange rate, approximately 85 per cent of Acorn’s total revenue comes from within the UK or other non-EU countries. “Brexit is not expected to have a significant impact on the business,” the report concludes.

Manufacturing is still central to the success of Yorkshire, a report from manufacturers’ organisation Make UK and accountancy firm BDO has shown, with the sector accounting for 14 per cent of the region’s economy, way above the national average.

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