Com­pany Re­port

Belfast Telegraph - Business Telegraph - - Analysis & Company Report -

RY­OBI op­er­ates a man­u­fac­tur­ing plant in Car­rick­fer­gus and spe­cial­is­ing in alu­minium cast­ings for the mo­tor ve­hi­cle sec­tor. The value of an­nual sales in­creased year by year un­til 2015. The re­sults for 2016 re­flect a pause in the growth of sales fig­ures, re­main­ing at nearly the same level as a year ear­lier at £75.2m.

Look­ing ahead, the strate­gic re­port, pos­si­bly cau­tiously, says the di­rec­tors are not aware of any likely ma­jor changes in their ac­tiv­i­ties in 2017.

The trad­ing re­sults in 2016 recorded an op­er­at­ing loss of just un­der £4m, in con­trast to an op­er­at­ing profit of over £1m in the pre­vi­ous year.

The change is ex­plained as a con­se­quence of high prod­uct launch costs for new con­tracts and also that ramp-up vol­umes were lower than ex­pected with some projects de­layed un­til 2017-2018. A re­turn to prof­itable trad­ing is an­tic­i­pated.

After al­lowance for net in­ter­est costs on bor­rowed funds, the pre-tax po­si­tion was a loss of nearly £4.2m in 2016.

The com­pany makes spe­cific men­tion of the pos­si­ble im­pli­ca­tions of Brexit as a source of in­creased eco­nomic uncer­tainty. The com­pany will “con­tinue to mon­i­tor the im­pact of Brexit through­out the cur­rent year” and, as they add cau­tiously, be­yond.

In 2016, the business paid div­i­dends of only £250,000 to the par­ent share­holder, which was less than the pay­ment of £590,000 for the pre­vi­ous year.

A fea­ture of the com­pany re­port is an em­pha­sis on a con­tin­u­ing re­search and de­vel­op­ment (R&D) pro­gramme.

New prod­uct launches are ex­pected to con­tinue to grow and de­velop the business. Ex­pen­di­ture on R&D amounted to nearly £0.9m in both 2015 and 2016.

Cap­i­tal ex­pen­di­ture in 2016, at £7.8m, has re­mained at a high level, more than off­set­ting pro­vi­sions set aside for de­pre­ci­a­tion of £4.1m.

Em­ploy­ment has been main­tained at the higher level of an av­er­age of 455 peo­ple, 15% higher than in 2015.

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