A strong order book on the back of a move into new markets has helped Teesside firm Wilton Engineering to boost profits significantly.
The Middlesbrough firm says diversifying into the defence sector has allowed it to keep its 112-acre Port Clarence facility busy, meaning it can create efficiencies. New accounts for the 178-strong specialist in large, complicated structures show operating profits more than trebled from £890,201 in 2022 to £2.7m in the year to the end of June.
That came as turnover rose from more than £16m to £18.6m. At the time of those figures, Wilton counted its order book at £24m of projects, which included work for customers in the oil and gas, mining and defence markets - with further long term defence contracts in the offing.
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Wilton says the growth is expected to continue into 2024 with enquiries and prospects reported to be strong. New works have been accommodated at the firm's recently expanded site, which includes land and buildings acquired at Haverton Hill in 2021 using a £4.1m bridging loan.
And in a post-year end deal, Wilton sold a 58% stake in its blast and coating business - Universal Coatings & Services Ltd - to Glasgow-based Denholm Group. The move, completed in early November, is said to have been the natural progression for the 61-strong business, which increased turnover and returned to profit in the first quarter of 2023 thanks to additional workshop contracts.
Wilton said that under Deholm's co-ownership, Universal has the potential to grow further. From its Teesside base, the firm will offer specialist coatings, blasting, scaffolding and rope access to customers in the naval defence, energy and industrial facilities sectors.
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Bill Scott, chief executive of Wilton Universal Group, said: “Diversifying our market and operations into defence has provided continuous working. This allows the business to focus on efficiency which has proven to be a successful strategy. Through our entrance and establishment in the defence sector supply chain, alongside maximising on the opportunities that have come from the expansion of our extensive riverside site, we have increased the sustainability of the group and created a platform for further growth."
He added: “This will contribute to continued investment in innovation, our capabilities and our people, both in terms of developing future generations through our apprenticeship academy and our existing workforce as well as attracting new people to the group as we continue to grow.”