Umeco stands at turning point following Pattonair disposal
AEROSPACE group Umeco stands at a turning point as it prepares to refocus operations following the agreed disposal of its supply chain business.
Chairman Neil Johnson said the decision to dispose of the Pattonair operation and concentrate the business on composite materials was in the best long term interests of the group
Shareholders have voted overwhelmingly in favour of the sale of Pattonair and the £109m proceeds will be used to reduce group debt.
Announcing an 18.6% increase in full year revenues, Mr Johnson said: “This has been a transformational year for Umeco. The sale of our supply chain business will enable Umeco to focus its resources on its composites business, which we believe has attractive long-term growth prospects. I am confident that our entrepreneurial and experienced management team is well placed to maximise our growth potential.”
Following the Pattonair disposal, Umeco’s key markets will be: aerospace & defence, wind energy, recreation, automotive and other industrial markets.
Mr Johnson said the group intended to build further scale through organic growth, supported by investment in group capability and product innovation, and potentially through acquisitions.
He said the group anticipated further benefits from greater consistency in branding, improved technology transfer between businesses, broader and deeper market coverage, and by developing staff.
As a consequence of the Pattonair disposal, the results for this business have been shown as a discontinued operation in the group’s annual results statement.
Excluding Pattonair, revenue from continuing operations in the year to March 31, 2011 was £207.4m (2010: £174.8m, an increase of 18.6%. Adjusted operating profit increased by 17.5% to £19.5m (2010: £16.6m).
The board has proposed a final dividend of 11.5p per ordinary share making a total dividend for the year of 18.25p per ordinary share (2010: 17.5p). The final dividend is payable on October 7.
Andrew Moss, the group’s new chief executive, said Umeco had performed strongly during the year, reflecting the gradual improvement in global market conditions and the impact of the strategic decisions taken by the group.
“We look forward to making further progress in 2011/12. The increasing use of advanced composite materials in our core markets of aerospace & defence, wind energy, recreation and automotive offers an exciting long-term growth opportunity for the group,” he said.
