Formica, the plastic manufacturer based in North Shields, has reported an improving financial picture despite recording a fifth consecutive year of losses. The company, a fixture on the Coast Road for over 70 years, has released its accounts for 2025 showing revenues increased from £35.7m in the previous year to £41.4m. During the same period, the operating loss narrowed from £8.3m in 2024 to £5.7m.
Sales Breakdown and Export Growth
A breakdown of sales reveals that more than half of the company's income, £28.1m, came from exports to Europe, while UK sales accounted for £13.2m. This export strength underscores the company's reliance on European markets for its revenue growth.
The company has been restructuring its operations in the North East over the past few years, with the headcount at the factory more than halving since 2018. The latest accounts put employee numbers at 232, a slight increase from the previous period.
Restructuring and Site Modernisation
Formica has also been remodelling its Coast Road site, demolishing a number of buildings that are no longer in use. Restructuring costs of £300,000 are recognised in the accounts, related to the demolition of the Finished Goods Warehouse at North Shields.
In the accounts, the company states it is “continuing to focus on its North Shields facility”, adding that “whilst reducing the factory footprint we believe through modernisation and centralisation we will be able to support future growth in a controlled manner and therefore benefit from an improved operating leverage.”
Directors' Comments and Future Outlook
The directors add: “Formica Limited has completed a number of projects as part of a significant investment programme at its North Shields site, resulting in a reduced cost footprint. Meanwhile, the company has taken steps to strengthen its commercial margin.
“Along with other actions such as administrative cost reductions and commercial and operational synergies with sister companies in the group, the financial run-rate of the company is improving and is expected to continue to improve, driven by the market demand as well as ongoing commercial and marketing initiatives.”
Company History and Ownership
The Formica product dates back to 1913 when an employee of US-based Westinghouse filed a patent for a process to make laminated insulators. The North Shields plant has been part of the Dutch Broadview Holdings group since 2018, after it was bought in an $840m deal from previous owners Fletcher Building, based in New Zealand. In March, Formica's third-party UK sales business was also sold to Broadview, further consolidating ownership.
