Sheet metal fabrication firm Hydram Engineering saw a near 43% rise in revenues in 2022 as demand for its cutting, coating and assembly services returned post-pandemic.
The Ferryhill-based firm, which operates a 135,000 sqft facility employing an average of 238 people at the beginning of 2022, posted accounts to the end of March 2022 which show profitability grew at the same time. Now in its 46th year, the firm said that despite three wage increases for staff during the year, recruitment challenges posed by low unemployment meant its ability to meet customer demand had been substantially impacted.
Operating profit at the firm grew more than 77% to £2.85m as Hydram described a strong return in demand from its existing customer base, which includes transport operators, defence companies, automotive and aerospace businesses. Hydram has worked with well known names such as Hitachi Rail, Komatsu and Mitsubishi.
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Managing director David Greatorex sounded a note of caution as he pointed to estimates of global recession by the third quarter of 2023. He also said UK inflation would contribute to "significant" cost pressures in the firm's 2023 financial year.
But despite the potential headwinds, Hydram was said to be in strong financial health and would continue investment in equipment and training.
Writing in a report accompanying the accounts, Mr Greatorex said: "The short to medium term economic outlook In the UK will be determined by the outcome of the Russia/Ukraine war, the Northern Ireland protocol, inflationary pressures and availability of labour. The indications we have from our customers is that demand will remain strong over the next 12 months, and the board are forecasting an increase in revenue in FY23. This is despite strong headwinds including: increasing inflationary pressures, labour shortages and predictions of an economic slowdown
"Despite the uncertainty, the board are confident about the medium to long-term future and will be continuing to support; key capital equipment purchases, training and improving efficiencies over the next 12 months."
Hydram has been owned by US-based metal forming specialist Dynamic Aerospace and Defence Ltd since its acquisition in 2018. The firm is touted as among Europe's largest sheet metalwork fabrication companies.
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