Tradeteam set for further job cuts as pandemic continues to decimate hospitality sector

DHL Supply Chain subsidiary Tradeteam is bracing itself for further job cuts and losses of up to £7m as a result of the impact of the Covid-19 pandemic on the hospitality sector.

Reporting its latest annual results, to the 31 December 2019, the company, which specialises in drinks distribution, warned that the pandemic will have a long-term impact on the hospitality sector, with volumes expected to “never recover to historic levels”.

It warned that it expects to recognise additional onerous contract provisions and asset impairments “resulting in additional charges in the region of £6m to £7m” in its 2020 financial statements.

In the strategic report to its annual results, the company said the impact of the pandemic had forced it to temporarily close 13 sites and that, despite the easing of the lockdown over the summer, volumes had continued to take a “significant” hit as venues operated under reduced capacity rules.

The company added that two permanent site closures have been made as a direct result of the impact of Covid-19.

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The closure of its Sheffield site and the downsizing of the Ebbw Vale in South Wales in August saw the loss of 250 jobs.

It added that further planned cuts “may result in the loss of a number of roles in a number of sites to reflect the ongoing reduction in volumes. This is expected to conclude by the end of 2020.”

Tradeteam’s latest annual results show the company was already struggling with falling revenues before the pandemic hit, although its pre-tax losses saw a slight reduction.

In the year to 31 December 2019, revenues dropped to £155.3m (2018: £168.6m), whilst pre-tax losses stood at £45.5m, an improvement on the previous year, when Tradeteam made losses of £46.5m.

Parent company DHL Supplychain, which is owned by Deutsche Post, has yet to respond to a request for comment.

The post Tradeteam set for further job cuts as pandemic continues to decimate hospitality sector appeared first on Motor Transport.

DHL Supply Chain subsidiary Tradeteam is bracing itself for further job cuts and losses of up to £7m as a result of the impact of the Covid-19 pandemic on the hospitality sector. Reporting its latest annual results, to the 31 December 2019, the company, which specialises in drinks distribution, warned that the pandemic will have a long-term impact on the hospitality sector, with volumes expected to “never recover to historic levels”. It warned that it expects to recognise additional onerous […]
The post Tradeteam set for further job cuts as pandemic continues to decimate hospitality sector appeared first on Motor Transport.Read More

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