An Angus-based manufacturer producing parts for the automotive, telecoms and medical sectors has seen its profits eroded after taking a major currency exchange hit.
New accounts posted at Companies House show Arbroath-based Interplex PMP, which is one of the town’s largest employers, generated revenues of £14.66 million in the year to June 30.
The company – part of Singapore-based Interplex Private Holdings Pte – produced an operating profit for the year of £170,466 and a pre-tax loss of £20,222.
The previous year took in a 15-month accounting period in which revenues reached £20.13m.
Operating profit for the extended 2015 financial year came in at £1.26m, with a pre-tax profit of £1.05m secured.
In her strategic report to the accounts, director Sheila Ng Won Lein said the directors were satisfied with the overall performance in a “period of difficult trading conditions.”
However, she highlighted the currency exchange issues as a particular drag on the business.
“Our exports into the EU during our year under review were adversely affected by the strength of sterling against the euro during the year, affecting our reported sterling revenue stream and creating recognised exchange rate losses of £198,204 during the year, compared to a gain in 2015 of £307,09,” she said.
“This is a significant factor within our income statement this year and we are taking steps to mitigate our exchange rate exposure.”
She also said the unit had received significant upgrades to ensure it remained up with the technology curve.
“To remain competitive the directors recognise that fresh investment is necessary and, in the period under review, the company invested £538,542 in new plant and machinery,” she added.
“This included additional reel-to-reel electroplating capacity, which strengthens our position we believe as one of the few UK companies offering a full-service stamping, plating and insert-moulding capability.
“Whilst still maintaining a strong presence within the automotive sector, further diversification has been secured in the period as we have moved into the telecommunications sector.”
Interplex’s Arbroath facility carried an average of 173 staff during the year. a slight uplift on 2015’s headcount of 166.
The company received a major accolade last April when it was awarded the Queen’s Award for International Trade, one of only 13 Scottish companies to be recognised.
business@thecourier.co.uk