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 £50.9m a year earlier to £24.5m. That was the third consecutive year of falling revenues, which had topped £90m in 2021.
The company remained profitable, however, posting an operating profit of £267,193, though this was down on the £1.1m profit reported a year earlier.
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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: “Tharsus has been a long-term partner of Ocado Group Plc, manufacturing over 10,000 robots during the commercial partnership. During the prior year, Ocado’s 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.
“In 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.”
Tharsus Group is made up of robotics firm Tharsus and fabricators Universal Wolf. The group’s 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 “transition year” and said that it had “emerged leaner and more agile after a programme of restructuring that has significantly reduced its cost base”. It added that it would continue to invest in the development of its VersaTile technology, a new logistics automation product portfolio.
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Founder and director Brian Palmer said: “Our customers have faced weak demand, cost pressures, skills gaps and supply chain uncertainty, that’s precisely where our capability comes in – helping them innovate, work smarter and compete in a rapidly changing global market.
“This 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’ve 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’ve made, we are optimistic about the opportunities ahead.