Sunderland pump and valve maker Haskel Europe Ltd has reported a loss-making year as it invests to take advantage of the emerging hydrogen market.
The 85-strong firm saw an operating loss of £4.1m in the year to the end of November 2021, citing its continued diversification into the hydrogen refuelling market. From its Sunderland base, Haskel exports a range of high-pressure pumps and valves capable of handling fluids and gases for customers around the world.
In newly published accounts, the firm said turnover had increased slightly to £20.7m thanks to sales of its hydrogen filling station technology including compression, storage and dispensing capabilities. However gross margin decreased from 27% to 1% during the year, a result, the firm said, of continued investment in its clean energy transition.
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Haskel has previously talked of contract wins in the Czech Republic for its Geno large fleet refuelling stations and in the Netherlands for its hydraulic-driven gas booster, H-Drive. There has also been significant orders for refuelling systems from Western Australia.
Speaking in the accounts, Stephen Learney, director at Haskel, said: "Whilst the results for the year are below the expectations of the directors, they reflect the ongoing investment and commitment to new emerging markets - namely Hydrogen refuelling. In a bid to reduce reliance on carbon-based fuels, sustainability commitments made by various governments across the world demonstrate the importance that eco-friendly fuels such as Hydrogen will, and are playing.
"Haskel Europe Ltd is committed to this key strategic market and will continue to invest both material and human resources over the coming years. The directors acknowledge that this market is still in its infancy as reflected by the current year's results, but are confident that with rapidly progressing technological advances, and process standardisation, the company will move from R&D phase and margins will recover."
In a note covering post-period events, Haskel highlighted its £5.8m acquisition of Holmfirth-based control and instrumentation specialist Westwood Technical. The deal required a £6m drawdown from Haskel's group cash pool.
Last year Haskel - winner of the manufacturing award at the 2021 North East Business Awards - received a multimillion-dollar investment from its US owners, New York Stock Exchange listed Ingersoll Rand Inc. At the time, Haskel said it would use the investment to strengthen its business in several key areas, and that it aimed to treble the capacity of its Sunderland site by the end of 2022.
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