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Ringtons comes through tough trading times

Traditional North East tea and coffee brand Ringtons has dipped slightly into the red - with a £700,000 annual loss in 2009 on £35m turnover.

However, according to expert forecasts, the company could be set for brighter times ahead as global prices become more competitive and tea sales continue their resurgence.

The 103-year-old business, which remains one of Tyneside’s oldest family-owned firms, reduced its workforce from 540 to 444 in the year ending April 2009.

Annual losses increased from £156,107 to £709,630 during the period as turnover grew slightly from £34.6m to £35.6m.

Looking forward, the company said: “The group’s affairs in respect of its tea activity and insurance underwriting are considered to be satisfactory and progress in the development in the tea business continues.

“The key business risks affecting the group are considered to relate to raw tea availability and pricing.”

Ringtons’ latest financial report relates to a period in which poor weather conditions in tea-growing regions pushed down supplies and forced prices up.

But according to William Gorman, chairman of the UK Tea Council, the tough trading situation is getting easier for UK tea firms.

He said: “Things are fairly healthy at the moment. 2008 was an interesting year for the tea industry. Adverse weather conditions in places like India and Sri Lanka dictated the volume of tea produced so prices rose.

“Last year was quite a good year for the industry despite us being in this global recession.

“Tea consumption in the UK declined between 1970 and 2003 but since 2003 the decline has stopped.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .