Growing demand for British Engines’ products solutions has triggered a 9% boost in revenues amid tough trading conditions, accounts show.
The Newcastle engineering group, made up of eight subsidiaries spread across the region, has filed figures for 2023 showing an £11.9m rise in turnover to £141.6m, leading to operating profit of £5.7m, up from £4.4m.
The group said revenue growth was driven by an increase in demand for the group’s innovative engineering solutions, and was a result of developing opportunities into new markets as well as product development initiatives. The company said cost inflation was again a challenge throughout the year, particularly with regard to energy costs and wage inflation, which impacted inflation, and said it continues to face pressure on its product margins while 海角视频-based manufacturing struggles to compete with lower-cost economies.
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During the year the firm invested £8.9m in new equipment, and the net assets of the group as of November 3 2023 were £92.4m, up from £91.7m.
A report within the accounts says: “The group remains committed to its strategy of diversifying revenue streams by investing in new product development, investing in new equipment and developing opportunities in new markets and geographical regions. The directors believe the group is well positioned in high growth sectors such as energy, data centres, defence and robotics which together with a strong order book, should drive both revenue and profit growth in 2024. Whilst the cost pressures faced by the group in FY23 are expected to persist in 2024, general cost inflation has started to fall, as have energy costs.”
Despite the challenges, Alex Lamb, chairman of British Engines, said the group’s growth prospects remain positive.
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He said: “We remain dedicated to investing in the businesses in terms of people, processes and facilities for their long-term sustainability. Our revenue growth in 2023 is a testament to the hard work and dedication of our team in seeking out new opportunities to sustain the future of the business. We are mindful of the challenges that lie ahead. By focusing on cost control, building product margins and investing in our future, we are well-positioned to navigate these challenges and achieve sustained growth.”
Employees at three British Engines’ businesses undertook industrial action recently after rejecting a pay offer. The industrial action has now been resolved after members at each business accepted the ballot.
A spokesperson at the businesses said: “We offer highly competitive salaries within the sectors that the businesses operate and are committed to continuing to build a positive and productive working environment”.
The group, founded in Newcastle in 1922, has eight businesses – including CMP Products, BEL Valves, BEL Engineering, Rotary Power, Michell Bearings, Stephenson Gobin, Stadium Export Services and Tyne Pressure Testing – which design, develop and manufacture products which are used across the globe.
It has offices and factories in Newcastle, Longbenton, Killingworth, South Shields, Cramlington, Gateshead and Bishop Auckland, as well as a network of offices in 12 other countries around the world.