Petrol pump and electronic controls manufacturer Tokheim IS upbeat about its prospects, despite a widening of losses in its UK arm.
The French-headquartered firm is one of Dundee’s largest employers, with more than 550 permanent and temporary staff based at West Pitkerro industrial estate.
New accounts lodged with Companies House show turnover in the group’s wholly-owned subsidiary Tokheim UK fell back 4% to £72.72 million in the year to April 30.
Revenues in the firm’s two principal markets the UK and Europe were ahead on the year to £13.4m and £58.5m respectively, but overall turnover was dragged backwards by a significant fall in rest-of-world-derived sales from £4.8m in 2013 to £680,000.
Losses for the period grew from a £2.9m reverse in 2013 to £3.8m for the latest financial year.
The company yesterday said returns for the year had been impacted by a combination of challenging market conditions and continued investment in the business.
“Trading conditions have continued to be extremely difficult throughout the global financial crisis, resulting in a 4% decrease in revenue for FY13/14 over prior year,” the firm said.
“Demand from some major markets reduced, although importantly market share within those markets was maintained.
“Profit, whilst being affected by lower revenues, was also impacted by significant investment in new product development which is part of Tokheim’s commitment to innovation.
“In addition, extensive research was completed on the manufacturing process to further improve efficiency and minimise environmental impact.”
The firm’s Dundee operation was the subject of a dispute over pay raised by Unite affiliated workers earlier this year, but the situation was resolved without industrial action taking place.
The accounts show Tokheim UK employed an average of 458 staff during the year, but the firm yesterday said that figure had climbed significantly in recent months as the trading environment improved.
The company yesterday said it was committed to its Dundee base well-known for its lean manufacturing culture, which involves the continual scrutiny of procedures in order to make the production process as efficient as possible and had just opened a new paint shop following significant investment.
“Sales in the current period are significantly higher than the same period last year, driven by a partial recovery in existing markets coupled with entry into new markets,” the company said.
“New products have been launched in the early part of the year and have been extremely well received in a number of major markets and are resulting in volume growth.”
The firm said it is “committed to the future in Dundee and has invested significantly in a new painting facility within the Dundee factory” with production having started this month.
“As a consequence of the volume growth and capital investment, headcount levels are substantially higher than the previous year, reinforcing Tokheim UK’s position as a leading employer within the area.”