Tradeteam losses deepen as Covid lockdowns take their toll

The extent of the pandemic on Tradeteam’s financial results is revealed in its latest accounts, which showed turnover plummeted by 40% last year.

The DHL Supply Chain subsidiary specialising in drinks distribution, endured a stormy 2020 and it said the impact of reduced activity following the Covid-19 outbreak caused the temporary closure of 13 sites.

In a review of the business, it said: “The company has, and continues to participate in, the ongoing government coronavirus job retention schemes to support those staff unable to work due to continuing reduced activity, and mitigate the impact on the company.”

Turnover fell from £155.3m in 2019 to £93.2m in the year ending 31 December 2020.

Pre-tax losses increased, from a £45.6m loss in 2019 to a £48.9m loss during the period.

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Tradeteam said the hospitality industry began to reopen gradually from early July last year but then was affected by further lockdowns.

It added: “Between the national lockdowns volumes remained significantly impacted as social distancing requirements have meant venue capacities had to be reduced and will remain so until these measures change.”

Following a consultation, Tradeteam permanently closed two sites, which it said was as a direct result of Covid-19: “Further site announcements were made in September 2020 that resulted in a loss of a number of roles in a number of sites to reflect the ongoing reduction in volumes also resulting from Covid-19,” it added.

Tradeteam also said a decision had been taken to move its operating activities to DHL Supply Chain, along with the assets and leases relating to those operations, during the second half of 2021.

Last year, the company warned that the pandemic would have a long-term impact on the hospitality sector, with volumes expected to “never recover to historic levels”.