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For several years now I have been posting at the Large Format Photography Forum a chartbook documenting the financial performance of Harman Technology since it was created in the Ilford bankruptcy/reorganization of 2004-5. The chartbook is based on the company's required annual filings at Companies House UK. I've just revised it to include results through 2021, and figured it might be of interest here as well.
In this latest update, the effects of the covid pandemic are apparent. Turnover was down substantially in 2020, recovered in 2021 though not quite back to the pre-pandemic level. A similar pattern is seen in the operating profit, though the recovery there isn't so strong. The biggest hit to revenue in 2020 was in the US; this is reflected in the chart showing US share of overall turnover. US turnover and share recovered partially in 2021. Employment was maintained through the early days of the pandemic in 2020 and the associated lockdowns; the notes indicate that the company participated in the UK government's furlough scheme. Employment fell in 2021, however, with all of the losses coming from production; R&D employment remained unchanged.
The "business review" notes indicate that film sales held steady in 2020 and grew 15% in 2021. However, paper sales were hit badly by the pandemic, declining 47% in 2020 and recovering only 23% in 2021, remaining down 35% since 2019. The decline in paper sales is attributed to reduced attendance at schools and colleges by students who use photographic paper in the darkroom, and is noted to be "particularly stark" in the US, which is described as a significant purchaser of photo paper. Sales of processing chemicals grew by 10% in both 2020 and 2021, while sales of darkroom accessories grew by 50% in 2020 and 30% in 2021.
In commenting on business risks, the report notes that the company purchases approximately $2 million (yes, the number was stated in dollars) of silver nitrate as a key raw material, and that the company uses forward contracts to mitigate the risks associated with silver bullion price volatility. The company also uses contracts to manage changes in the dollar/sterling exchange rate.
Unfortunately, unlike in some prior reports, there is no information about the details of the R&D effort, about the size of Harman's processing service as a proportion of the overall business, or about the proportion of non-photographic revenues.
In this latest update, the effects of the covid pandemic are apparent. Turnover was down substantially in 2020, recovered in 2021 though not quite back to the pre-pandemic level. A similar pattern is seen in the operating profit, though the recovery there isn't so strong. The biggest hit to revenue in 2020 was in the US; this is reflected in the chart showing US share of overall turnover. US turnover and share recovered partially in 2021. Employment was maintained through the early days of the pandemic in 2020 and the associated lockdowns; the notes indicate that the company participated in the UK government's furlough scheme. Employment fell in 2021, however, with all of the losses coming from production; R&D employment remained unchanged.
The "business review" notes indicate that film sales held steady in 2020 and grew 15% in 2021. However, paper sales were hit badly by the pandemic, declining 47% in 2020 and recovering only 23% in 2021, remaining down 35% since 2019. The decline in paper sales is attributed to reduced attendance at schools and colleges by students who use photographic paper in the darkroom, and is noted to be "particularly stark" in the US, which is described as a significant purchaser of photo paper. Sales of processing chemicals grew by 10% in both 2020 and 2021, while sales of darkroom accessories grew by 50% in 2020 and 30% in 2021.
In commenting on business risks, the report notes that the company purchases approximately $2 million (yes, the number was stated in dollars) of silver nitrate as a key raw material, and that the company uses forward contracts to mitigate the risks associated with silver bullion price volatility. The company also uses contracts to manage changes in the dollar/sterling exchange rate.
Unfortunately, unlike in some prior reports, there is no information about the details of the R&D effort, about the size of Harman's processing service as a proportion of the overall business, or about the proportion of non-photographic revenues.