Hyde Group owners share £16m payout
SHAREHOLDERS in engineering firm Hyde Group benefitted from a £16.6m dividend in 2011, according to newly-filed accounts.
The large payout to shareholders, which includes family members of the group’s original founders, occurred despite the fact that the company’s sales slipped for the fourth year in succession. Sales fell by 8% in the year to September 30 to £107.2m (£116.1m), while pre-tax profits also dropped by 23% to £7.6m (£9.8m).
The company said that it considered the trading figures to be acceptable “in view of the volatility and the general global decline being experienced within the aerospace industry”.
Hyde Industrial Holdings was founded in 1968 and currently employs
around 850 staff in three main trading divisions – tooling, engineering and aeroproducts. It has sought to diversify in recent years and has worked on manufacturing projects for Crewe-based Bentley Motors as well as building pylons for Rolls Royce. It is also currently carrying out work on Canadian company Bombardier’s C-series of aircraft.
Private equity firm 3i had held a minority stake in the group for more than 20 years, but it is understood to exited in 2010.
Following the dividend payout, the company finished the year with net funds of £55.4m, down from £62.3m at the start of the year.
Earlier this week, accountants Deloitte revealed that growth in the global aerospace and defence market remained sluggish in 2011.
However, the firm said that commercial aerospace firms enjoyed much better growth than those who relied on defence contracts.
Commercial revenues grew by 10.1% buoyed by record production levels of commercial aircraft but defence income shrunk by 3.1%.
Mark Stephenson, head of manufacturing at Deloitte in the North West, said: “With the defence segment comprising about two-thirds of the global A&D industry, this report suggests that a continued uncertain defence outlook is likely to impact overall financial performance in 2012.
“However, the report findings indicate that defence spending is increasing in geographies such as India, China, Japan, the United Arab Emirates, Saudi Arabia and Brazil, as a result of increases in wealth and in light of growing national security concerns.
“Meanwhile, the report also suggests that increases in commercial aircraft production and decreases in one-time impairment charges in Europe in 2012 are expected to improve financial performance.”
