Gore-tex company sees profits jump despite jobs blow

● Accounts reveal 31% rise in profits but turnover fell slightly in year to March

Profits at the Scottish arm of the company behind Gore-tex clothing rose by nearly a third during the year to the end of March despite £8.7 million in severance costs from the restructuring of its manufacturing plant in Livingston.

WL Gore (UK) – which is part of the multi-billion dollar technical fabrics business WL Gore & Associates based out of the US – announced in September that it was shedding 120 staff following a global business review. Its fabric manufacturing facility was shut, but a second plant in Livingston and a further facility in Dundee were unaffected.

Despite the costs from the closure, Gore UK posted a 31 per rise in pre-tax profits to £16.5m. Turnover was down slightly, edging 3 per cent lower to £112m.

Net assets at the end of March amounted to £100m, up from the previous year’s total of £86m. The increase was the result of a £23m rise in inter-company receivables, plus the accounting impact of the fabrics reorganisation programme.

Rodger Pheeley, board member of Gore UK, said the strong balance sheet provides a platform for the firm going forward. The business is now “well-positioned to take advantage of more favourable market conditions as they appear in 2017.

“Our products continue to provide added value to our customers and our focus on improving efficiency across our global operations has increased profitability,” he added.

Though best-known for its waterproof, breathable Goretex materials used in clothing for walkers and other outdoor enthusiasts, the company’s products have applications in a wide range of industrial and consumer products.

In Dundee, it has about 120 staff making cable and cable assembly products, as well as electronic and electrochemical materials. Following the closure of the fabric facility, about180peopleinlivingston are focused on global sales of items such as protection wear, medical products, filtration, geochemical services, sealants and venting.

“The fabrics division in the UK is anticipating a reduction in revenues in the coming year, due to a global divisional decision to cease manufacturing in the UK and focus the operation on product sales and the support of global businesses from the UK,” directors said in their report. “The impact of this decision is built into our forward projections.”

WL Gore & Associates has operations in about 30 countries employing some 10,000 people.

The privately-owned group was set up in 1958 by husbandand-wife team Bill and Vieve Gore to exploit the properties of polytetrafluoroethylene (PTFE), a synthetic fluoropolymer with a variety of applications including its use in Teflon.

The company has been consistently recognised through the years for its workplace ethos, which emphasises a non-hierarchial, team-based structure.