A Fife-based sheet metal manufacturer said an “extreme level of competition” led to its sales falling by more than 9% last year.
Fifab Holdings saw turnover fall from £8.1 million in 2018, to £7.3m for the year ending September 30 2019.
The firm, which has its headquarters in Glenrothes, provides precision sheet metal work services, electomechanical assembly and precision machined components.
Its key sectors include aerospace, agriculture, renewable energy and defence.
FiFab, which was established in 1972, is now owned and operated by four directors who bought the company from majority shareholder Archie Smith when he retired.
John Penman, Craig McIntosh, Steven Smith and Roberto Morris were supported by a seven-figure funding package from Bank of Scotland to make the deal.
They established, FiFab Holdings Limited, to acquire the 100% share capital of Fife Fabrications Limited in October 2017.
Pre-tax profits at the firm fell by almost 32% last year, from £820,000 to £559,000, while gross profit percentage for the group dropped from 21.2% in 2018, 16.1% last year.
In his strategic report in the annual accounts, managing director John Penman said: “The principal risks affecting the continuing growth of the group include the uncertain climate in the manufacturing sector and the extreme level of competition for available work, both from home based and overseas companies.
“The group will continue to meet the demands of its varied customer base, promoting continuous improvement, people development, best practice lean manufacturing and state of the art technological capability.”
Over the accounting period, the firm employed a monthly average of 117 staff, an increase of five against the previous year, with 19 working in administrative roles and 98 engaged in production.
Wages and associated costs came to £3m, and increase of 2.2%.
In 2019, Mr Penman, who is the ultimate controlling party of Fifab Holdings, was announced as the recipient of the Alan Russell Award by the Fife Chamber of Commerce for his work for young people in Fife
The award recognised Mr Penman’s campaigning efforts to encourage local businesses to provide work experience and placement opportunities.
jimillar@thecourier.co.uk