Cammell Laird makes healthy profit but worries about future growth

SHIPBUILDER Cammell Laird continued its recent growth to declare a record profit of £10.2m in the year to May 31, 2010, according to newly-filed accounts.

Birkenhead-based Cammel Laird Shiprepairers and Shipbuilders also grew sales by 2.8% to £93.4m, which it said was slower than in previous years.

Writing in the notes to the accounts, chief executive officer John Syvret also predicted that the company “is not expected to see the same level of growth” in its current financial year.

Syvret said this was “mainly due to the impact of the Defence Review”, which has led to work on the Royal Fleet Auxiliary ships Bayleaf and Fort George being cancelled.

Highlights of Cammell Laird’s 2010 financial year included a £44m contract win to build sections of the new Queen Elizabeth Aircraft carrier and the successful completion of refits for Royal Fleet Auxiliary vessels Fort Victoria, Black Rover, Orangeleaf and Diligence.

Syvret also said that the firm was making a number of investments in heavy engineering in a bid to capitalise on the potential for work emanating from the proposed £15bn wind farms earmarked for the Irish Sea off the Liverpool coast.

“With the company’s highly skilled range of engineers, it is expected that these trades personnel will be able to migrate across the varying business sectors providing stability whilst de-risking core activities and markets”.

Accounts also show that the company paid out a dividend of £9.6m to shareholders. Net assets dropped to £6.8m, from £9.1m at the start of the year.