Profits rise at city space and defence contractor

Firm supports space missions

A Dundee manufacturer which provides high-tech components to the space, defence, cancer and avionics sectors saw its profits climb last year.

Newly published accounts at Companies House show Dunsinane Industrial Estate-based TRAK Microwave – which now trades under the Smiths Interconnect banner of its immediate parent group after a rebranding last year – generated sales of £10.48 million from continuing and discontinued operations in the year to July 31.

The figure compared to revenues of £13.58m in the prior year period.

However, pre-tax profits pushed ahead in the period, rising from £1.37m in 2016 to £2.04m last year.

The profit mix was signfiicantly changed year-on-year, with continuing operations in 2017 producting a £2.63m pre-tax return while ceased operations racked up a £591,000 loss.

In the prior year, pre-tax profits from continuing operations — which focus on the design and manufacture of highfrequency components and sub-systems for various radar and communications applications — produced £677,000 while discontinued operations contributed a further £702,000.

In his strategic report to the accounts, Florida-based business unit president Robert Torsiello noted the sale in May 2017 of the firm’s Kaelus business to Infinite Electronis for a profit of £252,000.

He said for the remaing core business at TRAK, the prevailing market was “generally positive”.

However, he added: “Towards the end of the reporting year there were signs of a softening in the global commercial space market which was offset by accelerating growth in the terrestrial global defence market and accelerating market penetration in the USA.”

US-founded TRAK’s Dundee heritage extends back to 1987 and its then acquisition of Channel Microwave.

In 1992, the group expanded through the acquisition of a passive microwave business formed from part of a management buy-out off Ferranti.

TRAK’s support for the space sector began the following year and it has since provided components for use aboard more than 500 missions.

It became part of defence contractor Smiths Group in 2004.

TRAK Microwave – which employs around 70 staff at its Dunsinane Industrial Estate base – is a subsidiary of the global Smiths Interconnect business.