One of Hull’s longest established manufacturers is confident of a bright future after a first full year back as an independently operating business.
Shipham Valves Ltd, which dates back to brass foundry beginnings in 1798, was returned to its original name following the buy-out from Finnish-owned Wärtsilä Valves Ltd in late 2020.
It had been a brand under the Nordic business producing non-ferrous and high alloy valves, recently operating from Brough after completing a move out of the city in early 2018. And while losses have continued under the ownership of New York-based Evergreen Capital as major investment has poured in, a strong order book has brought clear optimism for the oil and gas industry supplier.
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Turnover fell 36 per cent in the year, with operating losses at £2.4 million, leading to an overall loss of £5 million for the Humber Enterprise Park business, once set up costs were included.
The restructuring and deployment of the new business model - with the workshop part of the plan to maximise the operations - was highlighted as the key reason.
In his report accompanying the results, managing director Rob Moulds said: “Throughout 2021 the business continued to establish itself as an SME, following the 2020 divestment from a large corporation. Focus was given to the opening of an inhouse machine shop along with the implementation of a new ERP (enterprise resource planning) system.
“It is expected these improvements will continue which, along with a healthy order book and future product development, will allow favourable revenue growth and increased market share.
“Turnover in 2022 is expected to double over 2021. The company expects turnover to rise further in 2023 to £15 million to £18 million, which should position Shipham well for the years to come.”
The Middle East proved to be the strongest market for the 68-strong team, followed by the UK and North America, having seen the largest sales in the UK and Far East/Asia in 2020.
A former Queen’s Award winner, it had been based in Hawthorn Avenue, prior to the move to a 60,000 sq ft manufacturing facility on the Humber Bank, having been repurposed from BAE Systems’ once sprawling operation in the town.
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