Newcastle’s British Engines begins to see outcomes of shifting into new markets
British Engines says it’s beginning to see the outcomes of its diversification regardless of reporting a 10% drop in income.
The North East engineering group has unveiled outcomes for the 12 months ended April 30, displaying the dip in income from £154m to £138.5m, with an underlying working revenue right down to £3.6m from £6.2m the earlier 12 months.
Regardless of this, reported working revenue was broadly consistent with the earlier 12 months, because of reductions in distinctive prices referring to the corporate’s reorganisation.
The agency famous distinctive prices of £203,000 for reorganisation following the acquisition of Michell Bearings from Rolls-Royce, in addition to an distinctive value of £924,000, capital prices the agency had put in place for some R&D work for oil firm Petrobas which the agency then stated didn’t must be carried out.
An extra £1.457m of outstanding prices got here within the type of BEL Engineering (UK) Ltd’s manufacturing unit transfer.
Over time, turnover has shrunk from a excessive of £154m in 2014 to £138.5m in 2018, and revenue has tumbled from £20.7m to £2.46m.
Worker numbers have held sturdy over that interval, regardless of the autumn in gross sales and revenue, growing to 1,350 final 12 months from the 2014 workforce of 1,173.
Regardless of seeing turnover fall lately, the group’s chairman stated its choice to diversify right into a larger variety of trade sectors, to cut back reliance on the oil and fuel sector, was starting to bear fruit.