MS International sees dip in profit but remains optimistic

MS International has announced a fall in pre-tax profits but believes it to be a “very healthy” result in the current environment.

The Doncaster-based specialist engineering firm, which has three divisions – forgings, defence and petrol station superstructures – said it has “endured a most unfavourable backdrop” of defence spending cuts and protracted global recession.
 
It reported profit before taxation for the 12 months ended April 27, 2013 of £5.01m (2012 – £8.39m) on revenue of £54.49m (2012 – £55.95m). Group operating profit was down to £5,080 compared to £8,590 in 2012.

Chairman Michael Bell said: “From the outset, we made it clear that in the year to April 2013 the group could not match the record profit returns of the previous twelve months.  Considering the nature of the three divisions’ businesses and the current weak state of some markets in which they operate, particularly within the defence equipment sector which is renowned for being quite lumpy, we are truly pleased with the group’s overall performance, believing it to be a very healthy result in the current environment.
 
“We are not anticipating that the coming year will be any easier for us.  The outlook may be uncertain but our divisions are in good shape with excellent market positions, manufacturing facilities, committed employees and the group’s balance sheet is particularly strong.
 
“Our strategy is based upon the belief that maintaining reasonable and acceptable levels of profitability across the three divisions emanates from an unending commitment to invest wisely in support of ‘in-house’ product development programmes, the upgrading of production equipment to ensure efficiency and striving for the relentless and constant improvement in everything we do. Our commitment to this policy is absolute.”
 
The business has also announced that David Pyle, who has been with the group for over 40 years, stepped down as an executive director in April and has been appointed as a non-executive director. 

Mr Bell said: “Realistically, we are not anticipating the current year being any easier than last year. That said, we will seek to take advantage of the excellent reputations and market positions that the group’s three divisions have built over many years across  international markets.

“Furthermore, our very strong balance sheet and long term orientation and strategy should enable us to face the year ahead with some good measure of assurance and self-reliance.
 
“Defence still has a substantial pipeline of new business prospects, most notably from customers where the division already enjoys a laudable reputation and high degree of product recognition and acceptance.”