A Fife contract electronics manufacturer expects to perform well this year after its pre-tax profit plunged in 2015.
Dynamic EMS of Dunfermline reported a 6% rise in turnover at £8.85 million but its profit before tax fell 37% from £224,000 to £141,000.
Sales costs rising from £7.1m to £7.7m were the main factor in last year’s performance, but managing director John Dignan said the company anticipates sustained levels of revenue and profitability in 2016.
He said improvement could be expected from cashflow management, on-time deliveries to customers and zero returns under warranty.
Another factor was compliance with employment, health and safety and environmental legislation.
Dynamic EMS faced risks with bad debt, increases in raw material and energy costs, UK and offshore competitive pricing and cash flow.
It planned to react to these by monitoring customers’ financial performance and payment record, supply chain management and agreements with suppliers of materials and energy.
Competitive bidding and stringent cost control were other approaches.
With a workforce up to 93, the firm has clients across the communications, aviation, healthcare, life sciences, industrial and energy sectors.
Mr Dignan had been a director for ten years before he bought the company at the start of last year.
It already had long standing business relationships with global companies but planned to extend its reach.
It had clients who had traded with the firm for 15 years at the time of Mr Dignan’s purchase, and it hoped to keep these customers and added new ones under his ownership
Dynamic EMS rebranded and used advice from Business Gateway Fife to launch a digital and trade marketing campaign.
The increased visibility helped the firm to secure new contracts worth in excess of £2m.
The company was also awarded funding through Fife Council Economic Development’s Market Development Programme to attend a key trade show.
