Return to profit as MTL puts focus on exports

MANUFACTURER MTL Group returned to pre-tax profits according to its latest financial results after completing its first full year in state-of-the-art new facilities.

The Rotherham-based steel fabrication specialist turned over £49m in the year to the end of March 2012, compared to £50.3m in the previous year, according to accounts filed at Companies House.

The group recorded pre-tax profits on ordinary activities of £1.2m, after a pre-tax loss of £634,000 in 2011. The company said in its directors’ report: “The business benefited from its first full year in its new advanced manufacturing facilities and saw strong demand in its key markets.

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“A major defence contract came to an end and this was replaced by significant growth in the construction and offshore wind sectors.”

The company said there was “a significant focus on exports”, which increased to £7.3m from £3.9m in 2011.

Commenting on the results, Dr Henry Shirman, MTL Group’s managing director, said: “Following the successful move to our new state-of-the-art manufacturing facility, we are continuing to invest in people and equipment to provide a platform for further growth in a challenging mar- ket.”

The group, which makes products ranging from armour plating for military vehicles to wind turbine components, has previously said its move from Sheffield to a new 300,000sq ft facility in Brinsworth, Rotherham, enabled it to double capacity and bring all its manufacturing under one roof.

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MTL also previously said the £5m investment in its new home allowed it to specialise in volume manufacturing.

Its products are shipped around the world to mainland Europe, the Middle East, Africa, North America and India.

The core sectors MTL Group currently serves include defence, renewable energy, offshore oil and gas, construction, quarrying, rail and recycling.

The accounts for the year to the end of March 2012 also showed that operating profit was £2.5m, up from £1m in 2011, while group net assets at March 31 2012 were £2m, up from £1.3m.

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The firm said that the directors consider the result for the year and its financial position at March 31, 2012 to be “satisfactory” and the prospects for the company’s future development to be “excellent”.

The group’s trading results comprised those of its wholly owned subsidiaries, MTL Group Ltd and Mayflower Technology Ltd.

MTL Group was established in 1995 and underwent a management buyout in 2006.