Ellis Patents latest to repay furlough cash

Yet another company in the electrical industry has announced its plan to repay the cash given to them by the Government under the Coronavirus Job Retention Scheme. 

Ellis Patents, a cable cleat manufacturer based in North Yorkshire, has agreed to repay the £130,000 it claimed in furlough cash. The company received the cash as it aimed to protect its workforce from the fluctuating demand caused by the pandemic. 

Richard Shaw, chairman of Ellis Patents, said, “This Pandemic has created an unprecedented period of uncertainty for business, but the message from the Government has been clear – they wanted to protect people, save lives and protect as much of the economy as possible to prevent a post-Covid catastrophe.

“We followed Government guidance and did not close. We used the furlough scheme as intended, to protect our workforce through the leanest period. At the peak we furloughed 44% of our employees.”

Remarkably, Ellis Patents has come through 2020 in better shape than could possibly have been conceived in March, but there have been sacrifices all round. There was no annual pay review for employees, no returns have been delivered to shareholders and cash has been conserved by reducing capital expenditure to essential items only.   

“In December we looked at the improving picture and paid a one-off Covid bonus to our employees with a promise of a pay review in March,” continued Richard.

“While we also knew that we should consider our shareholders, whose continued support has been unstinting, we noted the impact of the furlough scheme in artificially inflating our bottom line. It was the unanimous decision of the Board that the company had a social obligation to return this money to the Government before paying any dividend.”

Already this year Ellis Patents has announced a big order for its Cable Guide Clamps to be installed in the Sotra Connection – an infrastructure project in Norway that has been described as the biggest in a generation. This news came hot on the heels of a series of significant orders from Latin America during 2020.