Defence market still tough for MS International
MS International said today that a predicted fall in business from the downturn in the global defence sector was less than expected.
The Doncaster-based specialist engineering company said its conservative projections were lower than reality with pre-tax profits down to £2.93m from £4.56m with revenue down to £47.13m from £54.5m in the 12 months to May 3.
Earnings per share were 14.6p (2013 – 22.5p).
The defence order book climbed to £46m from £28m a year ago however defence orders are phased for delivery through to 2020.
The group’s largest division is defence and its other two divisions are forgings and petrol station superstructures which operate on short lead time order books of a few weeks with total group orders received last year increasing to £65m to £53m.
The group today appointed long-serving David Hansell as a non-executive director following his retirement as managing director of MSI-Defence Systems after 50 years in the business which he joined in 1962 as an apprentice.
Net cash and short term deposits at the year-end increased to a record high of £14.29m.
Chairman Michael Bell said it was “unrealistic” to anticipate the current year being easier for the defence division than last year.
“Conversely, both ‘Forgings’ and ‘Petrol Station Superstructures’ divisions hold improving strategic positions in their respective markets and should continue to prosper,” he said.
“Defence would certainly benefit from a boost to the short to medium term order-book. We are hopeful that the weapon procurement phase for the current, substantial UK Royal Navy shipbuilding programme may not be too far away. Internationally, we are well placed in our marketing and positioned to bid effectively for any other new business that may arise, despite the uncertain market.
“Fortunately, the long term order book provides a good base load of business for future years and we are seeing encouraging signs from the market for our new product development activities. Our other two divisions should continue to prosper and added to that the group net cash position is at a record level.”
He said MSI would maintain its final dividend at 6.5p a share making the total for the 8p.
