US contracts help Clyde set record results

PNEUMATIC conveying firm Clyde Process Solutions has delivered a record set of annual results with chief executive Alex Stewart claiming that more was to come thanks to the group’s diversification in both customer markets and geography.

Pre-tax profits at Doncaster-based Clyde increased 62% to £5.5m for the year ended February 28, compared to £3.4m last time.

Earnings before interest, tax and depreciation before exceptional items was up 10% to £7.1m on revenue up a third to £82m.

Chief executive Alex Stewart told TheBusinessDesk.com that integration of the group’s operations in North America – MAC Equipment and Clyde Materials Handling – had helped it to significant order wins, including a £9.3m contract with a leading US food ingredients and sugar products provider.

The strength of its operations in North America – the group won £13m in orders over the year in the US sugar industry alone – had helped it to continue its growth despite slowdown in other global markets as a result of the economic slump, he said.

Mr Stewart said that had there not been a marked slowdown in its second half following the collapse of Lehman Brothers, Clyde’s results would have been even better.

He said the group was confident two postponed European steel contracts, which led Clyde to review its operations and cut staff, would resume in 2010 and would add £5m to its revenue.

Mr Stewart said: “We’ve got a global footprint now that covers areas including China, South Africa, and North America.

“It’s a challenging world market out there but we’ve been able to diversify our sales resource and we’ve seen growth. For example, food has been strong for us this year; both human and pet food.”    

Mr Stewart said he was confident that Clyde, which also focuses on air filtration technologies, was in a position to capitalise when the global ecomony picks up. Areas which he believes will be lucrative include metals and minerals.

It would also look to develop more technologies, he added.

However, he said trading conditions would remain “challenging” during Clyde’s current financial year.

Chairman Jim McColl said: “Through the implementation of a well diversified strategy, which has been complemented by focusing on customer contact, costs, credit and cash, the group has been able to deliver record results in what has been a challenging macro-economic environment.”
 
“By fully integrating the group’s combined entities in North America we have been able to secure significant orders, particularly in the food industry, and we believe that this combination will continue to generate contract wins across our other geographical territories.

“Our key customer markets continue to seek solutions that can reduce energy and the environmental impact of their operations and we believe that our group is well positioned with the technologies, market focus and global network to solve these challenges, as well as building on these record results.”

Clyde, which had an order book of £32m at the end of April, said there had been mixed performance in its Asia and South American operations.