Defence a key division for MSI

MS INTERNATIONAL (MSI), the Yorkshire engineering group, said it is performing well despite mixed results from its diverse business.

The Doncaster-based firm said that it achieved a much improved result in the second half of the year to May 1 after the “substantial” down turn in the first half.

For the year as a whole profit before tax was to £3.34m compared to £4.9m the year before while revenue was £41.04m dowm from £51.56m.

Earnings per share were 13.3p -a fall from 19.5p. Net cash and short term deposits at the year-end amounted to £8.91m.

MSI said that defence has produced anouther record set of results with growth primarily coming from strong export sales and manufacturing efficiencies.

Forgings however suffered from tough trading conditions with revenue falling 50%. As a result the division slid into a full year loss.

Petrol station forecourt structures also witnessed a down turn with revenue around 40% lower.

However, MSI said that its financial strength allowed it to continue investing in the development of new products and efficient manufacturing processes while re-aligning the business.

Earlier this month it announced it had bought the remaining 50% stake in joint venture Global-MSI for £4.5m.

Global is involved with the design, manufacture and construction of petrol station ‘superstructures’ and associated infrastructure products.

It added: “Our strategy of intensifying the marketing of our naval gun systems to overseas navies and shipbuilders is proving most fruitful and fortuitously permits the business to become even less dependent for revenue on our valued customer, the UK Ministry of Defence with which we have a number of long term contracts.

“Supported by a substantial level of orders on hand and numerous prospects emerging, the outlook for this design and manufacturing business looks very promising.”