Recovery in the UK steel sector combined with new contract wins helped boost Owens Group's turnover by more than a fifth last year.
Reporting its results for the year to 30 June 2017, the company, which rebranded to Owens Group in 2016, recorded a 22% rise in turnover to £55.6m (2016: £45.4m) and a pre-tax profit rise of 15% to £2.2m (2016: £1.9m).
In its strategic report on the results, the Llanelli, South Wales-based family firm said the rise in turnover reflected increasing activity for existing, long term, customers as well as several new contract wins. It added that the UK steel sector’s recent recovery had also allowed volumes to be maintained.
“To this end we have continued to work closely with (steel producer) TATA and have invested in new trailers to support this commitment moving forward,” the report added.
Pallet network revenues also remained strong in the year, with the company, which is a member Palletforce, continuing to invest in the pallet division.
The firm, which operates a fleet of over 1,000 vehicles across depots in Llanelli, Brigend, Wrexham, Newport and Droitwich in Worcestershire, said the rise in turnover and profitability had come despite the cost of setting up new contracts and making “significant” investments in its fleet, in the period, which had resulted in over 90% of the group’s fleet being less than three years old.
Commenting on the results, Huw Owen, group managing director, said: “Achieving turnover of more than £50m marks another milestone for Owens and the company has achieved significant transformation over the last five years.”
He added: “Our success has been achieved by investing in high quality vehicles and trailers, ensuring that we renew our fleet on a continuous basis, and ensuring that we develop our infrastructure and staff in line with our planned growth.”
Owens added that turnover is forecast to reach £60m in the current financial year.
