MTL Group positive on future despite being hit by downturn in construction sector

MANUFACTURER MTL Group said it is positive on its prospects for future development despite seeing a drop in turnover and profit after being hit by the downturn in the construction sector.

MTL, a private equity backed manufacturing specialist supplying advanced metal products to the sectors of defence, recycling, construction, rail, and offshore and renewable energy, achieved turnover of £44.35m for the year to March 31, down from £49m the previous year.

Profit for the year, after tax, came in at £1.27m, down from £2.43m.

Dr Henry Shirman, managing director of MTL Group, said: “Although total sales fell by £5m year on year, this was largely due to the well-documented downturn in the construction industry, which was down by £6m and hit us hard this year.

“Any upturn in the construction sector next year will show us in a dramatically different position.

“However, sales to the offshore wind energy sector doubled from £3m to £6m. During the past difficult year, we have focused on cost reductions and managing our cash.

MTL Group’s export performance was a particular highlight, with sales growing from 15% of sales to 18%.

Earlier this year, MTL Group announced it was looking to expand its exports and overseas presence, with a long term plan to invest in overseas manufacturing facilities.

Dr Shirman said: “We have been working hard in driving forward with our export strategy. We have recently won some significant export orders which are due to come on stream in the early part of the new year and we have already hired additional people to meet this demand.”

The company, which went through a management buyout six years ago, moved from Darnall in Sheffield to a 300,000 sq ft state-of-the-art facility in Brinsworth in January 2011.