Quartzelec reports strategic growth for financial year to Sept 2019

22 May 2020

Quartzelec, a leading independent engineering service provider with facilities throughout the UK and an ever‑extending global reach, continues to implement an integrated and robust organic growth strategy enabling it to report an 11.3% increase in orders received to £73.8m for its financial year to 30 September 2019, resulting in operating profits (before impairments) doubling to £3.245m.

Stephen Morrison, Managing Director, commented: "In the UK, targeting of specialist HV/LV and utility markets and continued selective tendering for electrical and mechanical construction work has showed an improvement in operating results, while the repair and maintenance business units have also seen improved activity and profitability levels. The economic environment is expected to remain challenging over the coming months, particularly as the impact of Covid-19 and Brexit become better understood, and whilst the level of profitability will inevitably be impacted, the company will continue to trade profitably in the forthcoming financial year although opportunities for expansion through organic growth may be limited both in the UK and overseas."

Both UK and International operations saw increased turnover, however, several key factors during the period also affected the profitability of the UK business including a loss on a significant contract for the repair and maintenance business; and a large contracting client going into administration.

Providing vital services and support to the UK’s National Health Service (NHS) and Ministry of Defence (MOD), Quartzelec’s global market support extends across; power generation including hydro and renewables; oil, gas & petro-chemical; other energy production and distribution industries; metals and mining; manufacturing, communications, construction and maritime.

Quartzelec also places special emphasis on its people including ongoing development and training and workplace safety, with over half of the worldwide facilities achieving ISO 45001:2018 for best practice in occupational health and safety management and the remainder targeted to achieve this by 2021. Investment in fixed assets was also significantly extended during the year with expenditure being increased by 14% compared to the previous year with additions to both tangible and intangible assets.

Stephen Morrison further commented: "Whilst trading up to mid-March 2020 has been relatively unaffected, we have since seen some customers closing sites and reducing work to only that which is essential. In the UK, where projects have been suspended and alternative work is not available to our employees, we have furloughed some staff and taken advantage of the Coronavirus Job Retention Scheme, avoiding the need for redundancies at this challenging time and with the assumption of ‘normality’ resuming will put the company in a stronger position for when the economy restarts.”

 

Financial Key Performance Indicators to 30 September 2019

 

2019 £’000

2018 £’000

Orders Received

73,825

66,282

Turnover

74,416

63,834

Gross Profit %

7.2%

6.4%

Operating Profit (Before Impairments)

3,245

1,655

Profit before tax

1,366

1,692

Net Cash generated from operating activities

5,103

(107)

  

#UnparalleledInEngineeringServices

Follow us on Twitter & LinkedIn

Connect with us

Quartzelec Ltd, Castle Mound Way, Central Park, Rugby, Warwickshire, CV23 0WB
Quartzelec is proud to be accredited by: