The Courier & Advertiser (Fife Edition)
Licensing hit sees Gore UK move into the red
US giant behind GORE-TEX has operations in Dundee and Livingston
The British arm of the global group behind GORE-TEX technical fabrics fell into the red last year.
W.L. Gore & Associates (UK) Limited said it had made a £7.4 million loss after tax last year after its bottom line was dragged by a £14.4m payment in relation to a “long-term negotiation with HMRC on a licensing agreement to our parent company, W.L. Gore & Associates Inc.”
The firm – which employs around 200 people in Scotland at its manufacturing bases at Dundee Technology Park and Livingston – reported a £4.5m pre-tax operating profit for the year to March 31.
The group’s accounts for the period have yet to be formally lodged with Companies House.
Filings for the prior year period to March 31, 2017 show the UK business generated revenues of £98.79m and pretax profits of £21.67m.
However, Gore UK said it continued to have a strong balance sheet which gave it a sound platform for future growth.
It said the fabrics division had completed the reorganisation of its operations in Livingston while its performance solutions and medical products units were expecting to see revenue growth in the coming years.
“Whilst this year’s results have been impacted by a one-off licensing payment, our products continue to provide significant added value to our customers,” Gore UK board member, Rodger Pheely said.
“Our continued focus on ensuring great customer experiences across our global operations will help to deliver strong results for our businesses.”
Gore UK is part of the multi-billion dollar US corporate giant W.L. Gore & Associates Inc, which is headquartered in Delaware.
The group first moved into the UK electronics cables market in the mid 1960s and opened its first UK manufacturing plant at Dunfermline in 1970.