MSI makes ‘satisfactory’ start despite market conditions

SPECIALIST engineering firm MS International has said it has made a “satisfactory start” to the year given market conditions after being boosted by a series of contract wins.

The Doncaster-based business, which has three divisions – forgings, defence and petrol station superstructures, said its defence arm has secured orders totalling around £20m for naval gun systems from customers in the Far East, with deliveries phased over an extended period.

Updating shareholders yesterday, executive chairman Michael Bell said: “In addition, the UK MoD has confirmed the extension for a further two years of our existing Contractor Logistic Support contract for their in-service MSI-DS 30mm naval gun systems, with a value of £12m.”

However, Bell said the international defence sector remains characterised by persisting procurement budget constraints and prevailing uncertainties in many defence equipment markets.

“Therefore, even though prospects for revenue growth are favourable and quite encouraging within both our Forgings and Petrol Station Superstructures divisions, the board believes it appropriate to take a prudent approach to expectations for the current year and expect group revenue to be no greater than that reported last year,” he said.

The company said its balance sheet remains robust with substantial net cash and short term deposits.

MSI also announced that Nicholas Bell will be joining the board as an executive director.

Last month, MSI announced a dip in pre-tax profits in its last financial year but said it was a “very healthy” result in the current environment.

For the year to April 27, 2013 it reported pre-tax profits of £5.01m (2012 – £8.39m) on revenue of £54.49m (2012 – £55.95m).