A Fife engineering firm has seen turnover increase by more than 11%, but multi-million pound pre-tax losses continue.
Newly filed accounts for Glenrothes-based, FTV Proclad International, show turnover grew from £7.5 million in 2018, to £8.3m for the year ending November 30, 2019.
However, the company’s pre-tax losses remained similar to the previous year at £3.1m.
Part of Dubai-based Proclad Group, the Glenrothes company is one of the world’s leading players in the specialist weld cladding sector thanks to its ground-breaking approach and extensive industry experience.
Commenting in the firm’s annual report, director, Alessandro Rottach said: “Following a long period of global decline in the demand for oil and gas sector services, the company witnessed positive signs that the markets were recovering.
“The company’s reputation for delivering a world class service remains, however, the long period of declined investment into new projects within the industry worldwide has had a significant impact on the company’s short term order outlook.
“Fortunately, early market indicators are providing directors with the confidence that markets are now recovering and that the business is well positioned to take advantages of opportunities for growth going forward.”
The company’s net assets decreased in the reporting period from £1.6m to net liabilities of £1.6m which the firm said is mainly due to the current year loss.
The UK provides the firm’s largest market, generating £4.1m of turnover, while the rest of Europe delivered £1.6m.
Sales to the rest of world brought in £2.5m of revenue.
Headcount at the firm, which dates back to the 1970s, rose by 13, to 115, with 90 staff employed in production and 25 in administrative roles, bringing a salary and associated costs bill of £4.1m.
The firm said it had prepared cash flow forecasts which indicate the UK group should continue to have sufficient resources available to enable each company to continue in operational existence by meeting its day-to-day liabilities for a period of at least 12 months.
Mr Rottach added: “The company remains a market leader and expert intis filed and along with the continued investment in new technologies planned for 2020 the directors believe that it remains well positioned for future growth and it is sound both operationally and financially.”
Mr Rottach said movement restrictions introduced at the beginning of the coronavirus pandemic had put pressure on the supply chain, however the lifting of restrictions in countries where the firm operates or supplies has “eased some of the stresses the business faced in the early stages of the pandemic.”
In April, the firm invested £2m in three new custom designed high-tech dual tungsten weld cladding rigs, allowing the firm to expand its capabilities and improve quality.
The company’s in-house research and development team was heavily involved in the design process of the rigs, which doubled the firm’s welding capacity.
At the time, general manager John Butchart said: “This investment demonstrates the strength of FTV Proclad International and signifies our commitment to growth that will see us through the next 45 years.”