Robotics firm Tharsus has seen revenues more than halve as its key contract with supermarket chain Ocado came to an end.
Accounts for the Blyth company have been posted for the year ending November 30, 2024, in which revenues fell from 拢50.9m a year earlier to 拢24.5m. That was the third consecutive year of falling revenues, which had topped 拢90m in 2021.
The company remained profitable, however, posting an operating profit of 拢267,193, though this was down on the 拢1.1m profit reported a year earlier.
In the accounts, the company highlights the impact of the end of its long-term relationship with Ocado and outlines plans to target sales in new sectors.
The accounts say: 鈥淭harsus has been a long-term partner of Ocado Group Plc, manufacturing over 10,000 robots during the commercial partnership. During the prior year, Ocado鈥檚 demand for these robots came to an end and this resulted in the manufacturing volume of these robots reducing to nil in late 2023. The company continues to provide spares and other ancillary services to Ocado.
鈥淚n recognition of the reduction in volumes with Ocado and other legacy customers in the last two years, Tharsus has updated the business strategy and is targeting sales growth from market sectors which are a good fit for our capabilities, particularly in the design and manufacture of strategic machines. This has started to bring in new development and manufacturing revenue as new customers have been introduced in the year despite the flat economic landscape and increased cost of capital. The strong increase in development revenue can be seen in the improved overall gross margin performance, and development revenue is a precursor to manufacturing revenue.鈥
Tharsus Group is made up of robotics firm Tharsus and fabricators Universal Wolf. The group鈥檚 headcount, which stood at just over 400 in 2021, fell by 60 during the year to come in at 233.
The company described 2024 as a 鈥渢ransition year鈥 and said that it had 鈥渆merged leaner and more agile after a programme of restructuring that has significantly reduced its cost base鈥. It added that it would continue to invest in the development of its VersaTile technology, a new logistics automation product portfolio.
Founder and director Brian Palmer said: 鈥淥ur customers have faced weak demand, cost pressures, skills gaps and supply chain uncertainty, that鈥檚 precisely where our capability comes in 鈥 helping them innovate, work smarter and compete in a rapidly changing global market.
鈥淭his has been a year of change, and I am very grateful to all our Tharsus and Universal Wolf colleagues for their efforts throughout the year. We鈥檝e taken decisive steps this year to make the business more focused. With our 60-year track record, strong balance sheet, talented team and the investments we鈥檝e made, we are optimistic about the opportunities ahead.
