Magnet: Hundreds of jobs lost as kitchen maker closes more stores
More than 300 jobs have been lost at the company behind kitchen maker Magnet as it continues its fight to return to profit.
Nobia Holdings UK has been attempting to turn itself around since 2019 when it last made a pre-tax profit.
Since then its transformation plan has seen hundreds of jobs lost and stores across the UK closed down.
Now, new accounts for the group’s latest financial year have revealed the latest impact of its turnaround efforts.
The results, filed with Companies House, show that the group’s headcount was reduced from 2,292 to 1,988 in 2024 while 26 loss-making stores were closed.
It also consolidated its Halifax site into its Darlington factory.
As a result of its cost-cutting measures, the group saw its pre-tax loss slashed from £54.5m to £22m in the 12 months.
The latest pre-tax loss means Magnet has racked up a pre-tax loss of more than £180m since it last made a pre-tax profit of £18.2m in 2019.
Over the same period, its turnover declined from £356.8m in 2023 to £354m.
Nobia Holdings UK is a subsidiary of Swedish firm Nobia AB, a company listed on Nasdaq Stockholm which took control of Magnet in 2001 in a deal worth £123m.
Magnet ‘well placed to prosper’
In a statement signed off by the board George Dymond, UK executive vice president, said: “The UK business continues to receive strong support from the Nobia AB Group, which has taken action to strengthen the group’s financial position and sharpen its focus on core markets across the Nordics and the UK.
“We remain confident in our strategy as a focused, efficient operating model that leverages our core strengths and expands our reach through new distribution channels in the mass premium market.
“We expect this approach to drive long-term profitable growth and deliver sustained cash flow in the years ahead.”
On its future, the group behind Magnet added: “The markets in which the group operates remain highly competitive and the impact of price inflation and labour shortages continue.
“However, the directors are confident that the group is in a strong position in the market and particularly with significant planned strategic investment it is well place to prosper in future years.”