JCB's Challenging 2024: Bamford Family Pays £866M Dividend Amidst Sales Drop
JCB, the British construction equipment manufacturer, faced a challenging 2024. Despite a decline in revenues and profits, the Bamford family, including founder Anthony Bamford, paid themselves a dividend of £866 million. Meanwhile, the company made significant political donations and increased its headcount.
JCB's sales dropped to £5.8 billion in 2024, down from £6.4 billion the previous year. Pre-tax profit also fell, from £805.8 million to £687.3 million. The UK market for these equipments saw a 24% decrease, while the world market declined by 3.7%. However, the Chinese market grew by 10% after a significant 70% decline since 2021.
The Bamford family's £866 million dividend payment sparked controversy, given the company's declining financial performance. JCB also increased its headcount by over 1,000 to 14,734 employees in 2024. The company made political donations of £30,000 to the Conservative Party and £50,000 to Conservatives Together in the same year.
Looking ahead, the market outlook for 2025 is 'moderately negative' due to geopolitical uncertainties. Despite the challenges, JCB continues to operate and adapt, with its focus on global markets like China.
