Last year proved more challenging for a Tayside turbine repairs firm than either Brexit or the Covid-19 pandemic.
That is the view of ATL Turbine Services chief executive Dale Harris, who said the firm had posted its “most challenging” financial results in a number of years.
Mr Harris said a combination of factors had impacted the business, which works across the defence aviation, civil aviation, industrial and marine sectors.
He said inflation, a hike in energy prices and rising supply chain costs were the primary factors.
Newly filed accounts show its turnover fell by just over £200,000 to £7.2 million in the year to June 2023.
However, pre-tax profits fell from just north of £1m in 2022 to £299,690 for the reporting period.
Mr Harris said: “Our last financial year was one the like of which we haven’t seen before.
“While fundamental business levels remain very strong, there was an unprecedented rise in business costs.
“From energy to metals and gasses to machine parts, we saw double-digit rises across the board and massively extended lead times.”
Mr Harris revealed previously the firm’s electricity bill increased by about 30%, to around £40,000 per month.
‘More challenging than Covid or Brexit’, says ATL Turbine Services boss
He outlined how tough the period was for the business, which employs 84 people at its Baldovie site.
Mr Harris added: “Over the last few years many businesses have had to become highly adept at dealing with the huge level of uncertainty created by Brexit and the pandemic.
“But this year has been even more challenging.
“Across the country, many companies are facing similar costs being added to their business.
“There is only so much that can be done to offset them through maximising efficiency or increasing prices.”
However, the accounts show ATL’s UK sales rose slightly to £5.2m for the period. Its sales to the rest of the world dropped from £2.2m to £1.9m.
ATL refurbishes late-life aero and light industrial turbine parts, giving them the same integrity and durability as new components.
More support needed for businesses
Mr Harris also urged the UK and Scottish governments to provide more support for businesses.
He said: “Government cannot see business as an inexhaustible piggy bank of revenue.
“They must recognise and support the many small to medium-sized businesses in the market that are under severe pressure, not due to falling inputs but due to rapidly rising costs outside their control.”
He said the firm had chosen to “maintain pay reviews” despite employees also battling the cost-of-living crisis.
The accounts show the wage bill rose from £2.3m in 2022 to £2.7m.
Although 2022 was tough for ATL Mr Harris was positive about the future of the business.
He added: “The current financial year has started well, with performance above budget and new customers secured.
“Plans to enter new markets are under way and several contract extensions are under discussion.”
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