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AIM-listed manufacturer sees profits dive as demand reduces

2025-04-16 04:17:58 By

A woman looking at matter under a microscope

A South West optical components manufacturer has blamed a reduction in demand for a slump in profits. AIM-listed Gooch and Housego (G&H) reported adjusted profit before tax of £2.6m for the six months to March 31, 2024 - down from £4.7m the year previously.

The business, which has UK offices in Ilminster in Somerset, Torquay in Devon, Denbighshire in Wales, and Plympton in Plymouth, also saw revenue fall to £63.6m from £64.5m in the first half of 2023.

However, G&H said its order book "remained strong” at £115.8m - up from £115.3m in September 2023 - and was continuing to grow. It said this would “substantially" de-risk revenue in the second half.

Charlie Peppiatt, chief executive officer of Gooch & Housego, said: "Despite the reduced demand in our industrial and medical laser markets persisting longer than expected, the medium term outlook remains positive underpinned by a strong order book and healthy pipeline with the group well positioned to benefit from increased demand levels as a result of operational and supply chain improvements.

"The market dynamics for G&H's technologies and capabilities remains strong in all our target sectors supported by the focused progress the group has made to establish the foundations to accelerate the delivery of our strategy.”

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The group announced an interim dividend of 4.9p per share - marginally up on the 4.8p issued in the first half of 2023.

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Manufacturing2025-04-16 04:17:58

Work starts on multicoloured 'Dream Factory' as Bentley starts paint shop work under £2.5bn electrification plan

Carmaker Bentley has started work on a key development at its Cheshire base as it bids to turn the site into a “Dream Factory” as part of its £2.5bn investment in electrification. Bentley is building a 12,460 sq m paint shop at its Crewe home that will feature a multicoloured facade showing off some of the 100 colours it now offers across its range of luxury vehicles. The development will also include a four storey office building that will be home to more than 370 Bentley staff. The project is a key part of Bentley’s preparations for electrification as part of its Beyond100 strategy to achieve “end-to-end carbon neutral status by 2030”. The company said: “This investment transforms an 85 year old site for a new age of electrification and confirms Bentley’s commitment to Crewe.” And it added: “The new facility at Bentley’s carbon neutral headquarters will be integral to the brand’s preparations for future battery-powered electric vehicle production and to set a new benchmark in next generation, digital, flexible and high-value manufacturing operations." Andreas Lehe, Bentley’s board member for manufacturing, and Jan-Henrik Lafrentz, Bentley’s board member for finance and IT, officially started construction at the paint shop by breaking ground. The building is set to be completed next year. Mr Lehe said: “Breaking ground on this new state-of-the-art building is a milestone moment and supports our aim for a benchmark position in new innovative technologies, skills and facilities to enable a truly digital, highly-flexible benchmark for luxury car manufacturing. “While also modernising our site, it is a clear demonstration of our ambition and long-term commitment to Crewe as we transform Bentley into the leader of sustainable luxury mobility.”

Manufacturing2025-04-16 04:17:58

Pharmaceutical manufacturer Pharmaron's Cramlington base set for investment despite losses

Losses have narrowed at Cramlington's Pharmaron amid a year of continued investment in the site. New results for the Chinese-owned business - formerly called Aesica - show operating losses fell from £24.4m to £13.7m in 2023 as revenues rose from £5.09m to £7.48m. Bosses said the Windmill Industrial Estate firm, which specialises in the production of active pharmaceutical ingredients, has the backing of its parent company, Beijing-based life sciences giant Pharmaron, in planned expansion. The firm has posted operating losses since 2020 when it suffered a temporary shutdown of all production owing to a "significant, unexpected incident". But that has not stopped Pharmaron, which acquired the facility in early 2022, from eyeing development of the site, which employs about 140 people. Read more: ScS boss Steve Carson to step down having steered retailer through Italian takeover Read more: North East technology entrepreneurs come together for new firm In the latest accounts, Pharmaron said it was reviewing plans to develop the Northumberland location and that it had approved £5m of investment into the 177,000 sqft factory, including its technical capabilities. The firm said it has a long term ambition to improve the flexibility of the site meaning it can accommodate shorter production runs as well as long term contracts Elsewhere in the accounts, directors pointed to a number of exceptional items that made up recent losses but which it said did not reflect underlying performance. Those included £4.3m of costs associated with Pharmaron's acquisition in 2022; a £1.2m hit created by mutual agreement with the firm's largest customer to cancel its contract and stop production, again in 2022; and in 2023, releases of an onerous contract liability totalling £100,000. During the 2023 year under review, the plant drew the majority of its revenue from the UK market (£3.1m), a change on the previous year when the UK constituted only £1.2m of revenue and the rest of the world made up £2.5m, compared with £1.5m last year. In documents attached to the accounts, Pharmaron director Stephen Lewinton said: "The long-term strategic plan for the site is to increase operational flexibility, so that both shorter production runs as well as semi-continuous and long-term production can be supported, to service a wider group of clients. This will involve reconfiguration of both operations and infrastructure over a period. The business development team will work closely with the site to maximise the potential revenue streams available.

Manufacturing2025-04-16 04:17:58

Korean market is latest play for Shield Therapeutics' iron deficiency drug

Pharmaceuticals firm Shield Therapeutics says it has taken a step closer to breaking into the Korean market. The iron deficiency drug specialist, which has operations on Tyneside, says its partner, Korea Pharma Co Ltd, has filed a new drug application (NDA) to the Korean Ministry of Food and Drug Safety (MFDS). Authorities in the country will review Shield's Accrufer tablets - which are design to help patients with iron deficiency anaemia. Shield, which will manufacturer the tablets, hopes approval will come in 2025, after which time the first sales in Korea could lead to the firm receiving a development milestone payment of about £1.48m ($1.9m). Future commercial sales milestone payments could also come following specific new sales targets and Shield will also receive double-digit royalties on net sales of Accrufer. Read more: Pragmatic Semiconductor points to progress as losses widen amid significant investment Read more: Tyneside chosen by British-Korean joint venture to build £923m cable factory The move is the latest amid efforts by Shield to capture a portion of the iron deficiency treatment market globally. Shield is particularly focussed on the US where it has partnered with healthcare firm Viatris to target clinicians as potential prescribers of Accrufer. Both have hired and trained 50 dedicated salespeople to tackle the market and late last month said it had seen strong quarterly growth of around 29% in the largest US states of California and New York, but had suffered setbacks in Texas. At the same time it told shareholders prescriptions reached around 77,000 in 2023 – a 310% increase over the 2022 financial year – and that its operating loss had narrowed from $49.8m to $31.1m Greg Madison, CEO of Shield, said: "Iron deficiency anaemia is a global issue. Shield is committed to working with valued partners, such as Korea Pharma, to enable global access of Accrufer and advance the care of patients with iron deficiency anaemia around the world. Completion of the MFDS filing by Korea Pharma marks the first filing for Accrufer in Southeast Asia. We are thrilled to work with our partner to reach this important milestone. We look forward to supporting Korea Pharma as they continue the pathway to making Accrufer available to patients in Korea."

Manufacturing2025-04-16 04:17:58

Prima Cheese expands into London amid ambitions to grow overseas trade

Food firm Prima Cheese has expanded into London with a new office and retail space amid efforts to boost international trade. The County Durham dairy specialist, which specialises in shredded cheese for pizza toppings, has opened new premises in north London via its property company Prima Projects. 'Prima South' is located on Islington's Holloway Road in The Billiard Factory property which is home to a number of creative businesses and adjacent to the National Youth Theatre. It says the move is part of plans for growth in 2024, including pursuing more overseas trade opportunity. Prima already exports to 50 countries and in 2023 generated turnover of more than £18.7m outside of the UK. Read more: North East betting tech firm AceOdds snapped up in £36m deal by Danish group Read more: Electric powertrain specialist Saietta failed with deficit of £2.89m, administrators say Last year Prima featured for the fifth time in the North East's Fastest 50 list of fast-growing, privately owned businesses. It also reported "change and innovation" across the business as it invested amid a rise in turnover. In the year to March 31, 2023 it grew turnover by 32% to £121.7m. Over the same period, operating profit fell to £3.7m from more than £5m, though the firm grew its headcount slightly to 166. The acquisition of the Prima South space was advised by Sintons' partner Alok Loomba, partner, supported by Chris Jackson, senior associate. Mr Loomba, a long time advisor to Prima, said: "Prima Cheese was founded in 1996 and since then it’s grown to become one of the UK’s leading cheese processing businesses, exporting to countries around the globe. Prima’s is a real success story and the acquisition of this new site in London marks a significant milestone in its growth, opening doors to new markets in the UK and beyond.” Nagma Ebanks-Beni, co-CEO of Prima Cheese, said: "More than 25 years ago, Prima started operating out of a small industrial unit in County Durham; but we had big plans and today we’re one of the largest exporters in the North East. Our new London base is a key part of our growth strategy and Alok and his team moved quickly to help us secure the premises we wanted in what was a competitive and fast-moving environment."

Manufacturing2025-04-16 04:17:58

South Tyneside's UTS Engineering acquires Scunthorpe specialist pipeline manufacturer

A South Tyneside engineering group is set for expansion after snapping up a Scunthorpe specialist. Jarrow-based UTS Engineering has expanded after acquiring pipeline manufacturer and service provider PTS Group, which was launched by a group of engineers who have worked within the oil and gas sector for 42 years. The £5m-turnover company designs and manufactures a range of pipeline products from its 80,000sqft base in North Lincolnshire, which are then shipped to customers in the UK and European utility sectors. It has also expanded further overseas, with clients in Australia, Columbia and across the Middle and Far East. UTS was established in 2001 by managing director Shaun Sadler and employs more than 450 staff, the majority of whom are based at the company’s design and manufacturing facility on the Bede Industrial Estate, Jarrow. Mr Sadler said: “PTS is highly respected in its sector for the quality and innovation of its products. It has an exceptional management team, headed by Kevin Dobbs, who founded the business and I am excited to working closely with Kevin in moving UTS forward. It has an outstanding client base, with customers such as Thames Water and Anglian Water and it operates in a wide range of industries, including water, gas and oil.” Kevin Dobbs, managing director at PTS, added: “We have a very good reputation in the UK market but also within Europe, not least due to our exceptional capabilities and we have a strong order book. However, we remain very ambitious and plan to grow the business further, now under the UTS banner. We see great opportunities with this deal.” Emma Pern, partner in the corporate team at Sintons, completed the deal on behalf of UTS.

Manufacturing2025-04-16 04:17:58

Stelrad warns of slowing sales but sees signs of recovery in core countries

Radiator group Stelrad has warned of a decline in sales around the world but says it is seeing “early signs of recovery” in some countries. The Newcastle-based firm, which has its main manufacturing base in South Yorkshire, has released a trading update ahead of its annual general meeting, saying that trading this year has been in line with management expectations. Stelrad said in March that subdued new build and renovation activity in the housing market, caused by high inflation and interest rates, had impacted on its sales, with revenues down 12.9% on a like-for-like basis. In today’s trading update, the company said that its “end markets remain challenging, with further year on year volume declines across most geographies.” But it said that it was seeing “early signs of recovery in some core territories” and that its financial performance remained strong, thanks in part to cost savings undertaken last year. Chief executive Trevor Harvey said: “Stelrad has had an encouraging start to 2024 with management’s experience, aided by the flexibility of our business model, helping to successfully navigate ongoing tough market conditions while underpinning our confidence in delivering on our full year expectations. “Having further consolidated our place as market leader of both the steel panel radiator category and the hydronic heat emitter market across Europe, the UK and Turkey, Stelrad’s initiative to expand its portfolio of higher margin, higher heat output radiators, which have a long-term role to play in the delivery of lower carbon domestic heating, has driven a 6% increase in Stelrad UK’s first quarter 2024 average heat output per radiator, relative to the prior year. This has had a positive impact on both average selling price per radiator and margin percentage. “The group remains well positioned for market recovery and the structural tailwinds from decarbonisation. We are confident in our ability to continue growing market share and delivering long-term, increasing value for all our stakeholders.” Stelrad, which can trace its history back to the 1930s, employs around 1,300 people worldwide, with bases in the UK, Italy, the Netherlands, Denmark and Poland. It is the leading radiator seller in the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece. The company listed in the Stock Exchange in 2021.

Manufacturing2025-04-16 04:17:58

North East names Barbour and Bedmax regain Royal Warrants

Two North East firms business have received Royal Warrants of Appointment from King Charles. Waxed jacket fashion manufacturer Barbour and equine bedding firm Bedmax have been chosen for the status which allows them to display the Royal Arms, including on packaging and at their premises. A Royal Warrant of Appointment is granted as a mark of recognition to people or companies who have regularly supplied goods or services - deemed to be of a quality standard - to the Royal Household. The firms, from South Tyneside and Northumberland respectively, are among 800 Royal Warrant holders that represent a represent a broad range of industries from individual craftspeople to global multi-nationals. A document is issued to the "grantee", giving them the authority to authority to use the Royal Arms for up to five years. Read more: Tyneside chosen by British-Korean joint venture to build £923m cable factory Read more: North East betting tech firm AceOdds snapped up in £36m deal by Danish group A 'Legend' must be displayed alongside the Royal Arms, providing details of which Member of the Royal Family granted the Royal Warrant, the company name, the nature of the goods or services provided to them and the head office address of the company. Barbour previously held three Royal Warrants from HRH The Duke of Edinburgh (1974), HM The Queen (1982) and HRH The Former Prince of Wales (1987). These Royal Warrants were granted as manufacturers of waterproof and protective clothing. Meanwhile Bedmax has help Royal Warrants from the late Queen Elizabeth II since 2008, and from the former Prince of Wales since 2019. Dame Margaret Barbour, chairman of J. Barbour and Sons, said: “I am delighted and extremely proud that Barbour has been granted the Royal Warrant of Appointment by His Majesty The King. Our Warrant has been granted as manufacturers of Outerwear, Clothing, Footwear and Accessories and it is a great honour for all of our employees that our workmanship and enduring quality are acknowledged by one of the highest authorities in the land. "A Royal Warrant is recognised as a mark of quality around the world from Europe to the United States and across Asia. It drives us to never let our standards slip.” Tim Smalley, managing director of Bedmax Limited, said: "It has been a privilege for Bedmax to hold Royal Warrants from the late Queen Elizabeth II since 2008, and from the former Prince of Wales since 2019. Today, I am delighted to let you know that Bedmax Limited has been granted a Royal Warrant of Appointment to His Majesty King Charles III as Manufacturer of Horse Bedding.

Manufacturing2025-04-16 04:17:58

Plastic parts manufacturer merges with 100-year-old firm

A Somerset-founded plastic parts manufacturer has merged with a 100-year-old Worcestershire moulding business. Merriott Plastics was founded in the South West and now has factories in Crewkerne and Rochester, in Kent, while Talisman’s plant is based in Malvern. The firms said the new multi-site business would deliver product development, manufacturing, logistics and technical support, particularly in the Midlands, South West and South East regions. Shaun Champion of Talisman - known as LGG Charlesworth until 2018 - and Andrew Lawrence of Merriott Plastics will jointly lead the new business. Mr Lawrence said: “We are truly delighted to announce this historic merger, bringing both these industry names together in the service of our customers and for UK manufacturing, while also honouring the legacy tradition that has brought us together.” Merriott Mouldings began operations in Merriott, Somerset, in 1938, and ICM in Rochester in 1947. Both companies are members of the British Plastics Federation. Law firm Wilkes facilitated the merger on behalf of Merriott Plastics. Rick Smyth, partner at Wilkes, said: “We are delighted to work with Merriott again. This deal showcases our commitment to developing long-lasting client relationships and our capability to deliver significant transactions.” The Wilkes corporate team working on the deal included Rick Smyth, partner; Lucy Freeman, senior associate; and Matt Workman, solicitor. The Wilkes real estate team included partner Mark Hodgson and senior associate Leighann Richards.

Manufacturing2025-04-16 04:17:58

'Flying the flag for British manufacturing ' - trenchless tech business Brewis Engineering sold

A manufacturer whose hi-tech products are used to help lay cables around the world has undergone a buyout - and its new owners have vowed to keep “flying the flag” for British manufacturing. Brewis Engineering was founded by Rod Brewis in his garden shed in 1984 and has grown into a global success story, with its trenchless technology equipment used to lay cables and pipes in the water, oil and gas and utility industries. Brewis, which has 16 staff and is based in Frome, exports across Europe, the United States and Canada as well as to New Zealand and Australia, the Middle East, Asia-Pacific, South Africa and India. Now business partners Graham Edden and Pat Farrell have acquired Brewis Engineering in a deal backed by WeDo Business Services. The value of the deal has not been disclosed. New managing director Graham is an investor and business leader who has run companies in sectors including automotive, hospitality and waste management.New commercial director Pat has spent most of his working life in the trenchless and construction industries. The deal provides an exit for Rod Brewis and his wife Sheila, who served as company secretary. Paula Fitch has retired as commercial director, while operations director Michael Rudd will stay with the business. Graham said: “Brewis Engineering is renowned and respected throughout the world for its innovative, market-leading products. Rod and the team have laid a tremendous platform for us to build on and capitalise on the opportunities for growth, especially in the US but also in other territories. “With the help of our fantastic and loyal workforce, we are looking to expand our manufacturing capacity and develop new products to provide sustainable growth over the coming years. “Some of the staff have been with the company for more than 25 years, having served their apprenticeships with us, and there is a wealth of knowledge, skillsets and ideas among the team for us to harness and achieve our goals. “We have some of the best engineers in the world here in the UK. The country’s design and manufacturing sector has a bright outlook despite the challenging economic headwinds, and we are proud to be playing our part in flying the flag.” He added: “We are excited to be taking a prestigious brand in the trenchless technology sector forward, using our extensive business and sector experience to support our customers and seize new opportunities.” Rebekah Middleton and Jim McDonnell at WeDo Business Services in Oldham arranged a funding package for the buyout. Rebekah said: “We were pleased to provide a package which enabled Graham and Pat to swiftly complete the acquisition once they engaged us. The founders and vendors, Rod and Sheila Brewis, have traded very successfully for 40 years and we wish them, Graham and Pat and the entire team all the very best for the future.” David Gledhill, Rachael Killworth and Jenny Chapman, of the asset-based lending team at law firm Bermans, provided advice and support to WeDo. James Young and Helen Carter at Harding Evans Solicitors, based in South Wales, advised Graham and Pat on the acquisition. Financial due diligence was carried out by Marcel Frei, of GMT Finances.

Manufacturing2025-04-16 04:17:58

Cranswick hails recovery in demand leading to higher earnings

A more stable environment for farmers has helped FTSE250 meat producer Cranswick to boost revenue and profits. Fresh results for the Hessle-based manufacturer, covering the year to the end of March, show the pork and poultry specialist managed to maintain pig volumes despite a significant reduction in national numbers. Investors on the London Stock Exchange were told Cranswick saw recovery in demand after last year's initial inflation shock as customers plumped for its premium products. It meant reported revenue growth of 11.9% to £2.59bn and a 23.6% rise in adjusted group operating profit to £185.1m while statutory group operating profit rose 14.3% to £166.9m. That was part of a year in which Cranswick ploughed £46.1m into expansion with the acquisition of pig farming business Elsham Linc and meat processor Froch Foods. Read more: Asda reports increase in sales through more convenience stores Read more: Rolls-Royce to build and test nuclear reactor parts in new facility Chief executive Adam Couch said the moves had helped build the firm's self sufficiency, increasing the "size, scale and quality" of its pig herds. He also said the strong performance came in the face of sizeable challenges, particularly Cranswick's access to labour, which could be further hampered by the Government's introduction of a higher salary threshold for immigrants on Skilled Worker visas. The firm called on the Government to appreciate the scale of the challenges with chairman Tim Smith suggesting it should "better concentrate its resources" on improving resilience to national food security and financial issues for producers. In response to labour challenges, the firm said it had expanded its recruitment programme - bringing in 650 workers from the Philippines. Elsewhere, the group reported a fall in net debt, from £101.4m to £99.4m. A final dividend of 67.3p per share was proposed - a 14.5% rise on last year. Mr Couch said: "Our ongoing successful performance is down to the unwavering passion, commitment, and professionalism of our teams across the business. I would like to extend my gratitude to all of our colleagues at Cranswick for their continued dedication and support which has enabled us to deliver a strong set of results and make progress towards our strategic objectives. "Alongside our colleagues, I would also like to thank our suppliers and customers, with whom we continue to work in close partnership. Our successful performance owes a great deal to the substantial investment we have put into enhancing our farming infrastructure and expanding our vertical integration. We have increased the size, scale and quality of our pig herds through ongoing organic growth and the acquisitions of new indoor and premium outdoor pigs.