SPECIALIST lighting manufacturer FW Thorpe has seen a slight dip in annual pre-tax profits despite a 4% rise in revenues.
The Redditch company said revenue of £55.6m was raised during the period ended June 30, up from £53.4m last year, resulting in an operating profit of £11.2m, up 5%. Pre-tax profit dipped 2% to £11.3m when compared with the same period last year.
Looking ahead, Thorpe’s said future operations were difficult to predict due to the likely impact of public sector cutbacks. However, it said that while a scaling down in the Building Schools for the Future programme was inevitable, this could pave the way for more refurbishments. It said it was also gaining strength in other areas of lighting where projects would continue, such as tunnel lighting and in prisons.
The firm said its business environment had become more stable during the period, however, operations had been flat over the year as a whole with no new factories bought, no new companies purchased, or any major investments made.
FW Thorpe operates a series of lighting companies, each specialising in a certain sector.
Thorlux, the group’s manufacturer of professional commercial and industrial lighting systems, saw its revenue rise 5% during the year, resulting in an operating profit up 7.1%. Major project successes included winning contracts for lighting systems in the Blackwell Tunnel under the River Thames, near the O² Arena, while its Thorlux Scanlight AT LED emergency lighting system continued to gain market share.
Thorpe’s said the company was also developing new and innovative products for the market, with a notable leaning toward LED lighting solutions.
Exports increased by a modest 2.8%, although the company said in view of the climate, this was “no mean feat”. The group is active in Germany, Sweden, Ireland and Australia.
The Mackwell business, which makes emergency lighting control gear and systems, was said to be trading in calmer waters. Despite the loss of a major contract, Thorpe said the business had traded well, with revenue dropping just 3.6%. The focus now will be on rebuilding margin, added the firm.
Compact Lighting, the group’s retail lighting systems supplier, saw an improved performance, reflecting the upturn in the sector. It said the business had been boosted recently with a sizeable order for its new display lighting products.
Philip Payne, the group’s manufacturer of specialist exit signs, enjoyed two notable project successes during the year having been selected to supply emergency exit lighting for the Olympic Stadium in Stratford along with its VIP and press areas, and the supply of exit signs to Madame Tussauds.
Thorpe’s said profits had to improve at its heritage lantern maker and refurbisher Sugg Lighting and the new year would see a fresh focus on this. The sales force has recently been bolstered and this was helping with order books.
Despite the tough conditions, Sugg still achieved some notable successes during the year and is currently involved in the refurbishment of lanterns on Richmond Bridge in London.
Specialist supplier for “clean rooms”, Solite ended the 2009/10 financial year on a high after enduring a difficult start. An increase in revenue will be the platform for further efficiencies and new products.
