FW Thorpe takes a “step back” as revenue and profits dip
SPECIALIST lighting manufacturer F W Thorpe has recorded a disappointing set of half year results with revenue down 9% and profit before tax down 11%.
The Redditch firm has blamed a lull in order intake.
In the six months to December 31, revenue was £27.1m, 9% down on 2011’s figure of £29.9m. Operating profit was £4.7m, down 13% on 2011’s £5.4m figure and profit before tax was £5.1m, 11% down on 2011’s figure of £5.7m.
Chairman Andrew Thorpe said: “I stated in the last annual report that, for reasons not readily apparent to us, there was a lull in order intake towards the end of 2011/12 financial year. These final months’ orders usually create a substantial backlog giving the following year an initial kick-start. Unfortunately, this was not the case this time around.
“Our order intake during the first six months of this financial year has not been rising in a continual upward trajectory but I can report that the orders for the last three months prior to writing have resumed the upward trend at our largest company Thorlux Lighting with other subsidiaries above, equivalent to, or below last year’s performance.”
Thorpe said the move to LED light sources continues with some 25% of group products now being LED compared to only 3% this time last year.
“Investment in the group continues with the largest project being the moving to completion of a new 2,400 sq m high roof finished goods warehouse for Thorlux sanctioned due to the serious capacity problems during 2011,” he said.
“This new facility will allow more finished goods stock as well as freeing up a deal of existing floor space for increased manufacturing facilities.”
Thorpe added that the company has been absorbing the cost of bolstering sales capabilities in a number of areas and, not least, absorbing the costs of its start-up TRT Lighting.
TRT Lighting will design, manufacture and supply LED roadway, road tunnel and area lighting for the future. First production at TRT is planned for summer 2013.
“Although the company has taken a step back, it is the first for some years and our figures still represent an 18% return on sales at operating profit level,” Thorpe said.
