The Courier & Advertiser (Perth and Perthshire Edition)
Profits rise at Fife cable producer Brand-Rex
CONNECTIVITY: Company says its efforts to target new territories ‘bear fruit’.
Fife cabling company Brand-Rex saw its pre-tax profits increase by 17% last year as it continued to target international markets.
The group designs and manufactures high-speed copper and fibre-based cable and connectivity systems for IT and data communications.
Headquartered in Glenrothes, the company saw its pre-tax profit increase from £3.5 million to £4.2m for the year ending December 31 2016. Turnover remained static at £60.6m.
In the company’s annual accounts, director Ian Wilkie said the firm’s key markets were “stable”.
He said: “The group’s data communication business holds a leading position in Europe whilst focusing on extending its market reach to Africa, Middle East, Asia and South America.
“The group’s high-performance cabling business produces control, communication, power and instrumentation cables for diverse industrial applications and niche markets, including automotive, rail infrastructure and defence.
“The markets in which the group operates remain stable.
“The group maintained its market position in the European countries in which it operates.”
Mr Wilkie said last year saw profit growth in core business areas as economic conditions in some key territories improved. He said the group’s development efforts in new territories continued to bear fruit.
“Growth in the Middle East was constrained due to cash flow issues in the region, which now appear to be resolved,” he continued.
Brand-Rex also conducts manufacturing, distribution and research and development from Leigh in Lancashire. Sales and marketing is directed through a number of international offices.
The company said it introduced several “ground-breaking connectivity solutions” during the year.
However, Mr Wilkie acknowledged that the company was likely to be impacted by Brexit.
He added: “The result of the EU referendum and the UK’s decision to leave the European Union will undoubtedly have an impact on the business.
“The extent of the impact is unknown at this time and developments continue to be observed by the directors, pending further clarity from the UK Government.”
Brand-Rex was acquired by Leviton, a leader in network connectivity systems based in the United States, in December 2015. It acts as Leviton’s European headquarters, serving Europe, the Middle East and Asia.