Northumberland engineering pioneer Tharsus Group said it has been “investing significantly” to prepare for future growth after seeing turnover top £90m.
The Blyth group, which includes Tharsus and Universal Wolf, started life as a traditional metalworks in the Northumberland town in the 1960s but has grown and diversified to become a leader in complex metal work and 海角视频 robotics, creating innovative solutions for the likes of Ocado, DHL and Small Robot Co.
Now the firm – a former North East Company of the Year which operates across three sites – has published accounts for the year ended November 30 2021, showing how it chalked up turnover of £90.4m, up from £80.9m, while operating profit came in at £4.6m, a slight increase on the 2020 profit figure of £4.57m. Pre tax profit also increased from £4.57m to £4.6m.
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Tharsus also now employs more than 400 people, having taken on staff in the period to take average employee numbers from 362 to 402. The company said revenue at Tharsus increased by 11.8% to £80.1m, derived from its core customer portfolio.
During the pandemic in 2020, the firm started an investment programme in its own products, including its social distancing device called Bump. The development, production and marketing costs were fully expensed in 2020 and the firm said the absence of similar expenses in 2021 has been one of the main drivers for the improved financial performance.
Universal Wolf, meanwhile, endured supply challenges, but demand from customers remained strong and revenue only slightly decreased to £16.3m.
The group said it sought to address supply chain risks by increasing its investment in inventory in 2020, purchasing components ahead of the manufacturing schedule.
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The firm said: “It was expected that the investment made in 2020 was sufficient to address these risks but continued issues surrounding PCs in particular has led to a further increase in inventory in 2021.”
Looking ahead, the firm said: “The group has invested significantly in the last few years in preparation for future significant growth and, having delivered a number of successful strategic machine development projects, is now well placed to win and deliver additional similar long term contracts in the advanced machine and robots marketplace.
“At the same time there has been significant preparatory work in 2021 in relation to the group’s own product development. The pace of development of own product is planned to increase in 2022.”
Following publication of the accounts, Brian Palmer, founder of Tharsus Group, said: “We’re pleased to report that the Group performed well in 2021 despite the challenging economic conditions facing the wider 海角视频. Last year’s financial performance demonstrates the strength and stability of the Group’s foundations. We continue to invest significantly in preparation for future growth and remain committed to our roots in the North East.
“We are well placed to deal with the impact of supply chain and inflation challenges, whilst remaining in control of the next phase of our growth journey as we accelerate our investment in product development over the course of 2022.