Friday, May 8, 2015

News: AESSEAL posts profit growth despite dip in sales

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Award-winning Rotherham manufacturer, AESSEAL, has continued its impressive record of profit growth despite a small decrease in sales.

With global headquarters at Templeborough, AESSEAL manufactures seals to stop leakage of harmful liquids and gases into the environment for a wide range of industries, including oil and gas, food, water, mining and pharmaceuticals. The firm has grown sales and profits every year for over 30 years.

AES Engineering Ltd, parent to the AESSEAL Group, has reported its annual results for the year to December 31 2014 which showed sales of £142m down 3.1% on 2013's £146.5m. EBITDA (Earnings before taxes) rose to £25.2m, up 6% on 2013.

AESSEAL, which supplies customers in 104 countries, said that the largest impact on reduced sales was adverse currency movements, when compared to 2013 and that allowing for exchange differences like-for-like sales growth was 2.7%. Cost control was the key to maintaining growth in earnings despite the lower revenue.

It was also reported that subsidiaries, the AVT consultancy business and the AESPUMP business, were aligned during the year which led to a turnover reduction for the individual parts of that business, but that the benefits of the integrated reliability business should come through in 2015.

Also during the year the group continued to strengthen its operations globally and in particular, in growth markets of the Middle East and South East Asia. A new new purpose built Asian headquarters on the outskirts of Kuala Lumpur was opened just last month, an investment of over £2m.

The group has also continued to invest heavily in product development and reports that it now has a complete range of mechanical seals and is able to compete on a level playing field with its larger competitors. The group said that it is confident that its designs are at the forefront of mechanical sealing technology.

Stephen Shaw, group engineering director at AESSEAL, said: "Our investment in research and development over the last few years has put our product range at the forefront of mechanical sealing technology."

An £8.7m project to expand the company's UK R&D and manufacturing capability is underway. In 2012, the growing firm secured secured £1.7m from the Government's Regional Growth Fund (RGF). AESSEAL purchased land adjoining the Global Technology Centre HQ in Rotherham, which has already expanded a number of times. It could lead to to staff numbers doubling over time.

AES currently employs more than 1,650 people worldwide, of whom approximately 680 are in the UK and Ireland and more than 350 in Rotherham.

Chris Rea OBE, the founder and current managing director of AESSEAL, said: "The group's purpose is to put customers at the heart of our business through providing exceptional customer service. In 2014 we are grateful that our customers continued to support the expansion of our products, processes and the globalisation of our business. Our business will only thrive in 2015 and beyond if we continuously improve every aspect of our business that brings value to our customers."

Whilst Rea retains a majority interest and control at AES, international investor, 3i hold a minority stake, having first invested in 1996 then increasing its stake to 40% in 2007. 3i valued its holding at £99m in September 2014.

AESSEAL website

Images: Made Here Now

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