Manufacturer acquires Dutch firm despite slow down in demand for products
Listed Doncaster-based manufacturer MS International has announced its acquisition of a firm in The Netherlands.
It has bought Armada Janse from Armada Group through its wholly-owned subsidiary Petrol Sign from for 339,000 euros (£301,150).
Armada Janse was first set up in 1935 and provides illuminated advertising, media facades, signage, public illumination and creative lighting solutions.
For the financial year ending on 31st December, 2018 the Dutch firm had unaudited revenues of 4.8m euros (£4.2m) and an unaudited profit before tax of 33,000 euros (£29,318).
MS International, which has its headquarters in Balby Carr Bank, includes four diverse operating divisions: Defence, Forgings, Petrol Station Superstructures and Petrol Station Branding.
In a trading update, MS International stated: “We believe that this acquisition, while further strengthening our already strong position in the petrol station branding market, will also introduce a highly reputable position for us in the international, general retail and automotive markets.
“Accordingly, we will change the name of our present ‘Petrol Station Branding Division’ to ‘Corporate Brandings Division’”.
Despite the acquisition, MS International said it was being hit by global economic uncertainty, adding: “Across the four divisions we are seeing a progressive reduction in demand for both our products and services.
“Of particular significance is the significant slowdown and delays in the awarding of UK defence related contracts, following requests for tender submissions. Delays in anticipated contract awards, by their very nature, engender costly uncertainty and concern particularly when being the only genuinely qualified potential supplier.
“Unfortunately, responding to customer invitations to submit a comprehensive tender and then failing to award a contract is becoming an increasingly frustrating feature of our domestic defence business.
“Notwithstanding these challenges, as a highly reputable and innovative SME, we are firmly committed to defending our company position for the long term in this important strategic market.
“Accordingly, we took great pride in launching at the recent London International Defence Equipment Exhibition a number of new and exciting products, emanating from our ambitious privately funded product development programmes and enhanced international marketing.
“In summary, given this reduction in demand, in the short term we expect a substantial weakening in the company’s results, although for the future we firmly believe we are well placed with additional strong business positions and a very healthy maintained cash position.”
