Thompson Aero Seating reports loss of £57m for 2020, before tax, as recovery plans make progress

Portadown firm, Thompson Aero Seating are ‘now emerging from a difficult and testing time’ having reported a loss during their recent financial year.

The annual report detailing their financial results for 2020 was recently filed at Companies House and reported a loss before tax for the financial year of £57million.

It reveals how the company addressed the reality of its position following the loss incurred in 2019, and the progress made in 2020 to begin to return Thompson Aero Seating towards profitability.

The report shows that, although Thompson Aero Seating ended 2020 with a loss before tax for the financial year of £57million, this was less than half that of 2019.

Whilst this latest result gives no cause for complacency, it is evidence of how hard the company has worked to recover. When viewed alongside the impact of the worldwide pandemic that temporarily paralysed the aircraft industry, to halve the loss under such conditions has been a considerable achievement.

Thompson, with the immediate impact of the pandemic on the aerospace industry facing it, began a major transformation of the business in 2020, entitled ‘Project Phoenix’. This continues into 2021.

Senior management and shareholders recognised that the company needed to refocus and streamline if it were to recover successfully and maintain its position as an industry leader in airline seat design and manufacture. The job losses that followed this decision, albeit implemented reluctantly, were necessary, and the current 2021 recruitment activity underway shows, from the quality of roles advertised, the direction in which the transformation is taking the company.

Now in 2021 there are signs that the business decisions taken are beginning to bear fruit. Examples of change can be seen throughout the business. To address employee concerns it was important that the workforce felt supported during the restructuring. In 2020 a staff forum was introduced to ensure that staff, and trade union representatives, were part of the consultative process within the company. Involving both management and employees the improved level of communication has brought transparency and accountability to the process of transforming the business, with employee views taken into account. For example, a training course in management and leadership is currently running in-house, a first of its kind for the company.

Throughout 2020 the company’s shareholders supported Thompson with investment in improvements aimed at securing the company’s future. They financed, amongst other initiatives, a state-of-the-art production line to improve manufacturing efficiency, and have continued to invest in equipment that improves production efficiencies, to ensure that Thompson maintains and enhances its position in the aircraft seating industry.

Neil Taggart, vice president and general manager at Thompson Aero Seating, said: “We are now emerging from a difficult and testing time both for the company and for the industry. We have a way to go before we return to profitability; however, the transformation programme is already showing positive results and we continue in our unchanged commitment to supply our customers in the global aerospace industry with seating of the highest quality. When we publish financial results for 2021, they will demonstrate this continued improvement.”

Throughout the transformation process the quality of product design and manufacture of premium aircraft seats has continued undiminished. The introduction in 2020 of the pioneering Vantage SOLO seat into the market, successfully launched by US airline JetBlue in 2021, has further opened up access to the single-aisle aircraft market, a type of aircraft which is increasingly being favoured by airlines.

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper whenever you are able to do so.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper when you can safely.

You can also enjoy unlimited access to the best news from across Northern Ireland and the UK by subscribing to newsletter.co.uk

With a digital subscription, you can read more than five articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.newsletter.co.uk/subscriptions now to sign up.

Thank you