WFEL pays the price of heavy debts
MILITARY bridge manufacturer WFEL Holdings increased operating profits last year but finance charges pushed it into the red.
Stockport-based WFEL, which is owned by Dunedin Capital, saw sales slip 9% to £34.7m but the directors said they were encouraged by a string of new service contracts and growing demand in export markets.
“The group expects to maintain its leading position in the market sector in which it operates and is optimistic about the opportunities which these markets present,” said the directors’ report.
According to recently filed accounts for the year to December 31 gross profits rose 3% to £7.5m and operating profits came in at £3m, much higher than the previous year’s £976,000 when the company was hit by charges worth £1.6m following a refinancing.
But the latest accounts show finance charges of nearly £3.9m, relating to bank and shareholder loans, left it with a pre-tax loss of £837,000. WFEL owes its banks – Barclays and Lloyds – £9.9m, and Dunedin, which bought it for £48m in 2006, £29.2m.
The trading company WFEL Ltd recorded a 3.7% rise in pre-tax profits to £4.2m on sales of £34.7m, down 9%.
The company employs 90 staff and counts the US Department of Defense among its customers. Some 84% of last year’s sales were to North America.
In a statement chief executive Ian Wilson said: “We are very pleased with 2010 results, which include the strongest profit performance that the company has delivered in the past five years.
“During 2010 we saw an increase in demand for our spares and sustainment services and a notable increase in interest from several emerging markets and other export locations to utilise our systems in military, homeland defence and disaster relief situations.
He added: “With our unrivalled engineering expertise, pedigree, global reach and market leading position in military bridging, we are well placed to continue our growth.”
