Engineering giant lost £68m in ‘challenging year’
LOSSES increased by more than £40m during a “challenging year” for engineering giant Doncasters.
The group, which supplies components for aero engines and gas turbines as well as manufacturing other specialist castings and forgings, is headquartered in Burton-upon-Trent and employs 4,000 people at 34 sites across the world.
Exceptional impairment costs of £31.6m, plus redundancy costs of £4.4m and a £4.7m loss on the sale of New England Airfoil Products, contributed to the poor results.
Sales also fell during 2015, down £41.5m to £637.4m, as pre-tax losses widened from £25.0m to £67.9m.
However the group’s board remains optimistic that the current financial year will deliver much-improved results.
Doncasters’ chairman Christopher Rowlands said: “Despite a difficult second half of 2015 in terms of trading performance, and continued end market uncertainty, cash generation and liquidity remain strong. A resumption of growth in revenues and earnings is anticipated in 2016 as contracts won in 2014 and 2015 begin to be industrialised.”
Revenues were affected by reduced demand from its customers in oil and gas, mining and construction, while about £10m of the sales fall was due to lower input metals prices.
The group also changed its management team, after the retirement of chairman and chief executive Tariq Jesrai. He was replaced by two people – Mr Rowlands and chief executive David Smoot, who had been chief executive of Doncasters’ owner Dubai International Capital. Separately, Duncan Hinks was promoted to chief financial officer as part of a planned succession.
