Pre-tax profits rise “in the face of testing conditions”

A Doncaster firm specialising in defence, forgings and petrol station superstructures has increased pre-tax profits and revenues.
In accounts published this morning, MS International’s half-year ended 28 October saw pre-tax profit rise to £1.64m from £600,000 for the same period last year. Its revenues were recorded at £34.63m, up from £25m in the previous half-year.
Chairman Michael Bell said: “We continue to make good overall progress. I believe this gratifying achievement, in the face of testing conditions in some markets, reflects positively on two of our fundamental strengths.
“Firstly, our long established policy to constantly review our capabilities, and if necessary adjust and adapt that serves us well by ensuring we are aligned to changing market conditions and demands, and secondly, our diversified operating structure, that can deliver significant advantages when trading conditions are varied.”

Net cash stands at £14.53m and cash at the last year end was £15.21m. The firm said that considerable investment continues across its four divisions, most notably on the new fork-arm facility in the United States.

Bell said: “Maintaining these valuable investment programmes at the expense of short term profit, is undoubtedly important to sustaining our long term progress.”

Bell said that the defence division’s global markets remain challenging owing to ubiquitous defence budget constraints. He added: “Though perhaps none more prevalent currently than the UK MoD. Media reports and comments on the topic have been widely chronicled recently.
“That said, on a positive note, we are pleased to report that during the period we finalised the renegotiation, and subsequent receipt, of a two year extension to our contract for the support and maintenance of the existing seventy- two MSI-DS 30mm naval guns systems, fitted across the Royal Navy’s fleet.”
However, order intake from the UK MoD over the period has descended. Bell said they had dropped to “disappointing levels.” Adding: “Pocurement programmes are being delayed, suspended, postponed or cancelled.”
The forgings division lifted revenue as the new facility in the United States progressively came on line with a capability to provide a competitive, US manufactured, product in that substantial marketplace.
Bell added: “Clearly, there remains more to do, and some costs to absorb, in order to elevate the facility to a position where it can maximise its potential within this extensive market, but we are confident of progress.
“In the UK we have maintained our policy of investing progressively to upgrade our fork-arm manufacturing facilities to enhance our capabilities and international competitiveness. In South America, where we have operations in Brazil and Argentina, the advantages of having an indigenous manufacturing facility enables us to successfully maintain our leading market position despite the economies of both nations being slow.”
The Petrol Station Superstructures division revenues in both the UK and Europe reflected a somewhat less buoyant market situation than at this time last year.
Bell said: “Nevertheless, in the UK a recent upturn in order intake indicates an improving trend towards a more active second half to the year. Conversely, indications suggest that our Poland operation may remain subdued for the remainder of the year. It is to be appreciated that both businesses operate successfully on relatively short term order books, so lack of clear visibility of future prospects is not unusual.”
The firm’s petrol station branding division made a very significant contribution to the Group’s results. Bell said: “A highly commendable performance was achieved as an estate-wide rebranding programme for a major petrol station client in Germany gained considerable traction especially during the summer months when conditions for installation operations are more favourable.
“Complementing that momentum, the newly established UK arm of the division, trading under the name of ‘Petrol Sign’, has achieved outstanding progress in establishing a highly regarded position in our domestic market.”