Cross-Solent operator Hovertravel is looking to cut its workforce by 17, a move driven by the loss of 86,000 passengers since the pandemic, recent Budget changes by the Labour Government and at a time when the company has filed a £780,000 loss, Island Echo can reveal.
It has been confirmed that Hovertravel is conducting a comprehensive review of its operation to identify cost efficiencies to ensure a sustainable future. This week, the company has put its staff on notice following a meeting on Tuesday morning (10th December) where the grim reality of the current situation was laid bare, with future timetable changes also on the cards.
Island Echo understands that all engineering and operational staff have been put ‘at risk’, as have some back office staff. Around 17 members of staff are set to lose their jobs as the firm looks to cut its staffing costs. The news comes just days after Island Echo reported on Vestas’ plans to cut 300 Isle of Wight jobs.
Accounts for the financial year ending 31st March 2024 show that refinancing of the company’s loans and related interest, alongside increasing staffing costs and the impact of supply chain management, led to the company generating a loss (before tax) of £731,127. The loss in 2022-23 was £735,515. In addition, actuarial losses on the defined benefit pension scheme of just under £52,000 took the total comprehensive income before tax to a loss of £782,734.
Figures show that the company most recently generated a turnover of £6.26million, but the gross profit margin fell from 16.7% to 10.8%. In the period reflected in the accounts, a total of 587,257 passengers were carried across the Solent – a drop of almost 30,000 year-on-year and a drop of 85,990 since 2019-20.
As of their 2024 accounts, Hovertravel employ a total of 77 people; 41 terminal staff, 14 engineers, 11 pilots and 11 in the office. Back in 2020, a total of 88 staff were employed by Hovertravel.
The potential loss of 17 staff members in 2025 would see a reduction in staffing of more than 20%.
National minimum wage increases, brought in by both the previous Conservative regime and the current Labour government, as well as the recent National Insurance changes being pushed through by Labour, have led to added costs for employers across the country. This is having a direct impact on Hovertravel.
A spokesperson from the transport union RMT has said:
“The RMT were called to a meeting with Hovertravel about a re-organisation due to the decline in passenger numbers since COVID-19, and with the impact of the budget, employees were advised of the new operational proposal.
“The raise in the National Minimum Wage in April will affect 90% of the operational staff falling below this and therefore has a big impact to Hovertravel’s budget as all staff will have to have an increase.
“This directly impacts our members, and we will work with Hovertravel management to limit the amount of redundancies, and hope that we can come to a collective agreement which must not include any compulsory redundancies, a fair wage is paid following the NMW increase, and that our members can be repurposed within Hovertravel LTD. If these can not be achieved we would have no other option but to ballot our members for industrial action; however I hope that this will not be needed.”
Speaking on the news, a Hovertravel spokesperson has told Island Echo:
“Due to the continued decline in numbers travelling across the Solent since the Pandemic, the ongoing challenging economic conditions, and the measures announced in the recent Budget, Hovertravel can confirm that it is conducting a comprehensive review of its operation to identify cost efficiencies to ensure a sustainable future. This includes reviewing the timetable, staffing levels and rostering across all departments, working with our recognised union, the RMT.
“More information will be shared once consultations and reviews have been completed.
It’s understood that Hovertravel has secured shareholder support from its parent company, Bland Group UK Holdings Limited, of commitment to continuing financial support beyond March 2025.
First Vestas, now Hovertravel… we’ll lose count of the number of businesses lost to this shambles of a government soon enough.
You ain’t seen nothing yet, this is only the start
It’s going to be a Bleak Mid Winter for many.
But too be honest it doesn’t matter who is in power
they all work for the same bosses, and carry out the
instructions they are given.
They are all singing from the same hymn sheet.
Another bussiness down the shitter, thanks to not fit for purpose governments following each other, both of which with no idea of what is happening in the real world or ordinary people livinging in it
I and my family were very regular Hovercraft users until we simply could no longer afford their ticket prices. Lots of friends also used the Hovercraft to visit but they couldn’t afford to continue either. And so stiflingly hot in the summer, even for 10 minutes. Shame all round.
I would use the service if the prices were cheaper,
why run empty when they could charge less.
The way things are going there won’t be no
Ferry operator’s soon.
We will all be trapped on this crumbling island
Lol
Welcome to Labour Britain.
People thought the Tories done a lot of damage
in 14 years, Lol.
Look what Labour have done in 5 months
Pensioners have had their winter fuel allowance
taken away from them.
Farmers have been hit with extortionate inheritance
tax, and folks it is going to get worse.
Just wait until the Budget kicks in, more and more
Companies will fold and job losses will be common
as Tattoo’s and Vapes
Lol
Pensioners who can’t afford it get an additional benefit. Why should farmers escape IHT unlike the rest of us (they’re not even paying the full amount – it is half what you and I have to pay!!!) they can use financial planning companies or transfer any assets, like the rest of us.
Get yourself educated with the facts before spouting nonsense.
You need to go back to school, stop
being a Div!
Not all pensioners can get extra help, and if
farmers close down where will you get your food
from, where do you think McDonalds get their meat
from!, just imagine if the uneducated Numpty’s can’t
order their Burger fix!
You have a lot to learn!.
Twat..
Well maybe if they reduced their fares, they might have more customers.
When I worked there in the late 90s/ early 2000s a day return was £14.50.
I bet that even allowing for inflation, the same ticket is MUCH more expensive now.
Exactly, a day return ain’t much cheaper than a
Cheap day Car Ferry crossing.
It’s less than 5 miles across and they charge so much
Criminal.
Greedy B’stards
The cost of living is now starting to kick in you can’t just expect people to afford things they used to , with everything outweighing wage rise like food ,energy cost council tax etc etc something has to give and I’m afraid it has.
its bad news for businesses.
next will be people / home owners being in arrears with mortgages ,bills and getting repossessed.
This government
needs to see this before its to late
It is all part of the plan, you will own nothing and
be happy.
They want everyone on a universal basic income
IT IS ALL ABOUT CONTROL, that is why they
Orchestrated the Plandemic
Hovertravel is ridiculously expensive, and has far too many staff in the terminals (two on the counter at all times of day, and 2 more floating aimlessly!) and has been for some years, this is nothing to do with any G’ment changes. Plus the increase of faster and cheaper services, it’s about time they sort themselves out!
Very true, I have seen people floating around
reception.
Like many businesses Tesco & M&S to name a few,
they employ too many shirkers and not enough
workers. Island Roads are the same.
More watchers than doers!, businesses cannot
run like that!
Too many staff in the terminal. Technical delays due to poor reliability and weather limitations of the craft. Poor communication with customers when services are delayed or cancelled. Not surprising they have lost customers.
Good ol ceramic bobhead reeves well done all who voted labour ..ye you know who you are so smug to vote this shower of shit in….now live with it for the next 5 years..