Brandauer confident as full year profits rise
BIRMINGHAM precision component manufacturer Brandauer has said it remains confident of securing profitability and growth despite operating in tough markets.
Latest accounts for the year 2012/13 lodged with Companies House show the Aston-based SME made a pre-tax profit of £199,360 (2011/12: £80,314) based on sales of £8.4m (2011/12: £9.6m).
The report by the directors shows that while sales may be down, the firm – like so many other SME manufacturers – is cautiously more optimistic than it was 12 months ago.
The report states: “Whilst economic conditions continued to provide challenges during the year, we have retained over existing business and strengthened our relationships with new and prospective customers.”
It said the company continued to secure new opportunities, in what was a very competitive market place and its pipelines remained encouraging. However, it said it was holding back on various new projects because of the situation in its markets and the cautious approach adopted by many of its customers.
Factors impacting performance were said to the pension fund liabilities and an aborted acquisition project which resulted in the firm having to pay out £24,000 in professional services fees. Outlay on research and development was broadly flat at £200,000 (2011/12: £203,000).
The group has net assets of £3,172,663 (2011/12: £3,016,225) and net cash inflow from operating activities for the year was £888,896 (2011/12 outflow of £119,341). During the year the group entered into lease purchase agreements of £603,000 for the new Bruderer presses (2011/12: nil).
The firm said it continued to try and build up sales and exports and during the year, investing significant time on strengthening the group’s brand, its website and appearing at trade shows. It has also invested in trying to strengthen its presence in the emerging markets and in sectors such as renewables and line safety.
It said its medium to long-term plan was to increase exports and domestic sales, broaden its customer base, invest in advanced manufacturing techniques and new technologies, deliver capacity driven sales activity, secure the future of employees and strengthen skills.
In outlook, the directors said they were “confident that the group will continue to maintain its current high levels of efficiency and productivity, winning new and profitable business, diversifying into alternative production methods and expanding product sectors and taking full advantage of new opportunities to grow the business”.
