Manufacturer back in the black after £13m profit increase

THE Rotherham-based UK arm of German manufacturer Kostal is back in the black, with profits increasing by £13.5m.

The business, which is part of independent family company Kostal Group founded in 1912 in Lüdenscheid, posted pre-tax profits of £6.1m for the year to 31 December 2015.

This was a major improvement on the £7.4m pre-tax loss the company made last year.

The company reported £100.4m in turnover for the year, up from ££99m in 2014.

Kostal UK said that the transfer of an “onerous” contract in 2014 allowed the business to begin stabilising in 2015.

However it has not all been plain sailing for the group, which lost a major contract earlier this year. According to the Barnsley Chronicle, 86 jobs are set to be cut at the firm’s Goldthorpe factory this year. Altogether it employs 771 people in the UK.

The group’s main activities include the development and manufacture of technologically advanced electronic and electromechanical (mechatronic) products. Many famous industrial companies, including all the world’s leading automobile manufacturers and their suppliers feature in the group’s customer base.