Defence budget cuts hit MSI
THE cuts in the defence budgets have continued to hit Yorkshire’s MS International (MSI).
In the group’s annual report, the executive chairman of the Doncaster-based specialist engineering company Michael Bell told shareholders “whilst the markets for our largest division, Defence, are contending with greatly reduced expenditure budgets, it would be unrealistic to anticipate the current years trading being any easier than the previous year.”
In the group’s AGM yesterday he added that since making that statement, the group has seen nothing that would suggest any improvement in the status of that market, although this week at Farnborough the Prime Minister indicated that there would be some relaxing of the UK defence budget restraints.
Mr Bell said: “Nevertheless, the tough times continue and whilst we anticipate the revenue for the Defence division for the year being similar to that reported last year, overall margins in the division are expected to be less favourable, owing to the current product mix. Reassuringly, the number of business opportunities we are either bidding or tracking continues to grow and performance test results from recent new product trials are most encouraging.”
Bell said the Forgings and Petrol Station Superstructures divisions, continue to prosper in line with expectations.
“The group maintains substantial cash reserves which will see us through these testing times, so that we may continue to invest wisely in the businesses,” Bell added.
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