Appliance repair group Pacifica Group has fallen to a loss despite showing “strength and agility” throughout the pandemic.
The Houghton-le-Spring company, which has field engineers around the country providing repairs for electrical and heating appliances, has published accounts for the year ended March 31 2021, showing turnover marginally rose from £51.18m to £51.99m.
But the previous year’s operating profit of £324,204 was converted to a loss of £841,932, while the pre-tax profit also fell to a loss of £1.061m.
The firm, which grew headcount from 529 to 599 during the year, said it is on course to deliver growth after maintaining strong levels of activity in the financial year, despite revenues being severely impacted in the first six months due to the Covid-19 pandemic.
Having generated record revenues through the last two quarters of the financial year, which has continued into the 2021/22, the group said it expects to deliver turnover in excess of £72m this year.
Pacifica operates a number of subsidiaries, and said it is now growing its UK market share and gaining customers from key competitors. The group repairs more than 350,000 home appliances every year and manages more than 320,000 customer warranty policies.
It said it has continued to invest in its engineer trainee programme and now employs more the 400 engineers nationwide.
Pacifica Group’s focus on the appliance repair and warranty sectors will also increase following the disposal of Pacifica Home Services (PHS) through a management buyout with share capital acquired by Viessmann and the existing management team, which took place in January.
Following the disposal, Synova, which has retained ownership of Pacifica Group together with its management team, will continue to support the development of Pacifica Group and the delivery of its growth strategy.
Kevin Brown, chief executive of Pacifica Group, said: “Pacifica has shown incredible strength and agility throughout the pandemic. By putting our customers and colleagues first we have built a stronger business. I’d like to say a huge thank you to the entire team for rising so selflessly to every challenge they’ve faced. Their efforts have been truly heroic.
“Although Covid-19 had a significant effect on revenue and profitability across all divisions, as the business took the decision to maintain all services throughout the pandemic, we ensured operational availability to all clients when they were ready to resume activities, which was reflected in the growth of revenues later in the year.
“While the pandemic is not yet over, we’re well-placed to build on the momentum in our business. We have strengthened our brand and increased the number of clients utilising services, while improving customer satisfaction.
“As a group, we have a strategic focus on both appliance repair and extended warranty services, which reduces overall risk and exposure to individual income streams. We have stepped into our next financial year in a strong position, with our positive outlook already being reflected in performance.”
During the year it made two strategic acquisitions during the year, Midlands-based DAC Ltd and TK Garnham & Sons in the South East, which have bolstered Pacifica Group’s UK coverage in the home appliance repair markets.
The group is continuing on the acquisition trail this financial year, and has this week announced a deal to take over Highland Appliance Services, as part of aims to consolidate the appliance repair sector.
Inverness-based Highland Appliance Services has more than 30 years’ home appliances experience and employs four field engineers and two office-based staff.
Mr Brown added: “This deal complements and underpins what we offer across a wider geographical area as part of our ambitious plans for growth.
“We are actively progressing our buy-and-build strategy and are looking to establish relationships with businesses like Highland Appliance Services that would benefit from being part of Pacifica.”
