Optare confident international markets can boost business
BUS manufacturer Optare is confident that prospective contact wins with major tenders in the international markets can help it look forward to a profitable future.
Posting its results for the year ended March 31 2013, Optare today said its current order book stands at £20.2m and has seen revenues of £75.9m – a growth of 6% over the prior period of the 15 months to March 31 2012.
The Yorkshire company also highlighted the export of 177 Solo kits to the City of Cape Town – the highest ever export order achieved by Optare.
The business posted overall sales of 389 single deck vehicles, a slight decrease on the previous 15 month period. EBITDA pre exceptional losses were £3.6m (£6.8m for 15 month period from December 31 2011 to March 31 2012) and pre-tax loss of £7.4m, trimmed from £13.4m.
Throughout the financial year, Optare has also launched three new products, Metrocity, Versa 11.7m and Bonito.
PG Nilsson, interim CEO, said: “Despite challenging market conditions over the last twelve months, I am pleased to report that we are now seeing the positive rewards resulting from consolidating the manufacturing sites and the significant investment in our new facilities.
“We have made considerable progress in supply chain cost reduction, implementing manufacturing efficiencies and further improving the quality of our products, and we continue to focus on our processes to drive continuous improvement. We are confident that we have built solid foundations for stability and growth to meet future challenges, secure in the knowledge that we have the support and backing of Ashok Leyland.”
In 2011, Optare moved to a new factory in Sherburn in Elmet in North Yorkshire.The opening of the production site saw the closure of facilities in Leeds and Blackburn and the sale of the company’s Rotherham site.
Optare said the retail market continues to be suppressed with the overall sale volumes flat across the company’s traditional markets, with higher manufacturing capacity than demand but is looking to growing opportunities in international markets.
Optare said: “The board anticipates that the UK market will be flat in the near future but growing opportunities exist in the Middle East, South East Asia and African countries. There are number of contracts that Optare is participating in overseas markets and we are awaiting outcomes that, if positive, could, in the board’s view, significantly change the outlook for the business. We are confident that our quality, unique design and life cycle cost will enable us to win some major tenders in the international market.
“The board looks forward to a profitable future with the successful launch of the new products, increasing demand and participation in the international market given the successful integration with Ashok and recognition of the company’s low carbon technology.”
Last year, Optare completed a deal that saw Ashok Leyland take a 75% stake in the business.
Nilsson said: “The partnership with Ashok continues to grow through integration with their international operations for export opportunities within the Ashok Global business. We are confident that this will result in an increased presence in new markets and lead to the conversion of major contracts into future sizeable orders through their extensive global sales network.”
