The Courier & Advertiser (Perth and Perthshire Edition)
Space and defence parts firm returns to the black
TRAK Microwave in Dundee produces profit of £1.37m on back of £4m hike in sales and turnover of £13.58m
A Dundee manufacturer of hi-tech components for use in the space and defence sectors has booked a return to profit.
New filings at Companies House show Dunsinane Industrial Estate-based TRAK Microwave produced a £1.37 million profit in the year to July 31, a significant improvement from the £607,000 loss booked a year previously.
The uplift came after the unit – a wholly owned subsidiary of Smiths Interconnect Group which itself is part of the global tech giant Smiths Group – saw an almost £4m spike in sales revenues as turnover for the period came in at £13.58m.
TRAK designs and manufactures a range of sophisticated high-frequency componentry and sub-systems for radar and communications applications, principally for clients in the defence, space and telecoms sectors.
Managing director Alan McNeill said in his strategic report to the accounts that the business environment had improved throughout 2016.
However, he said the firm had partially shifted its focus from Europe to try to avoid being impacted by volatility in the region.
“TRAK operates in the space, defence and industrial sectors, providing components for long-term, capital intensive projects,” Mr McNeill said.
“These markets are global in scope and highly competitive.
“The uncertainty experienced over recent years, due to governments’ spending priorities and constraints, showed signs of abating with positive impacts being felt on the order intake and general enquiry levels.
“TRAK continues to desensitise the business to its reliance on UK/EU spending by actively pursuing markets in commercial space business in the USE where progress continues to be made with a positive impact to revenues and scheduled backlog, which have resulted directly from the restructuring of internal and external sales channels within the USA and Canada.
“Looking forward, the global markets are expected to grow for the next few years.”
The company said it was also working hard to ensure it was as efficient as possible.
“TRAK continues to strive to improve profitability through increased productivity and efficiency,” Mr McNeill said.
“This involves reducing costs throughout the supply chain which has been affected by the current economic climate, where raw material costs fluctuate in real terms due to the movements of the UK currency.
“Manufacturing efficiency is an area that improvements are constantly sought through review of actual operational performance, review of new product introductions and product design.”