A raft of new contract wins and investments in new technology steered engineering firm Reece Group to a 48% leap in turnover, new accounts show.
The Newcastle group, the holding company for Pearson Engineering, Responsive Engineering and Velocity, has published accounts for 2019 showing the rise in revenues from £43.5m to £64.6m, reflecting new deals, business growth and advances in product technology.
The group, which employed 408 people last year across its Armstrong Works facility in Newcastle and a sister site in Sunderland, also converted last year’s operating loss of £10.1m to a profit of £5.6m. It also reported £1m investment in R&D programmes and £120m worth of assets.
The report accompanying the accounts details how Pearson Engineering had a successful year, growing turnover from £20.9m to £41m on the back of new business wins and several long-term R&D projects reaching final implementation and production stages.
The company, which employs 75 staff at the Scotswood Road site, is predicting another positive result this financial year, with further contracts in the pipeline and new products in development for its defence sector clients.
Responsive Engineering, however, had a challenging year and reported a trading loss of £2.2m, triggering a strategic review which led to the closure of its Port of Blyth manufacturing site.
Bringing the manufacturing operation into the Armstrong Works reduced overheads by 30%, the report said, while also refocusing the firm on its core markets.
The company added that while Covid-19 has had an impact on the business this year, the strategic changes implemented will create a more robust foundation for the subsidiary, especially in the defence sector markets.
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Meanwhile, Velocity saw significant growth in 2018 and maintained high levels of activity in 2019, achieving its largest machine order to date in 2019.
While the business was initially impacted by the pandemic in the first half of 2020, the firm said prospects remain good with demand rising again over the summer period and pot hole repair being cited as a key commitment by the Government.
John Reece, founder and director of Reece Group, said: “Overall, these are positive results for Reece Group as a whole and provide us with a very stable foundation from which to move forward, especially in light of the current uncertainty that surrounds the world economy.
“We are in a good position and we will look to build on this further as we navigate our way through what has become a challenging time for everyone due to the Covid pandemic.
“The end of year results are testament to the hard work, knowledge and commitment of all our staff as well as the support of our clients, stakeholders and supply chain partners over recent years. 2019 was a very productive year where we made continuous investment in skills, staff, facilities and innovation to help shape the vision for the Group as well as the focus and direction of our individual companies.
“We are at the forefront of a major global industry that is highly competitive but Reece Group is continuing to develop and manufacture advanced, specialist products that are simply world-class. Our roots firmly lie here in the North East and we continue to invest in the region, providing as many opportunities as we can, especially for young people.
“Whilst we are in a good position overall, like all businesses we must be flexible and responsive to a changing and volatile economy. The 海角视频 is likely to be in recovery for some time to come and whilst no one can predict what will happen, I believe that we are well placed to weather the storm and any impact that may follow.”
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The group also continued to donate to local community-led projects, supporting regeneration in the west end of Newcastle with almost £1m given over the last five years.
Through its support of the Reece Foundation, the group has helped younger generations through STEM-based education programmes that promote qualifications and entry into engineering and manufacturing careers.