Shipyard operator A&P Group has hailed an improvement in repair work at its Tyneside site and its wider defence contracts.
New accounts for the group - which runs yards at Hebburn, on Teesside and in Falmouth - detail improvements across A&P's defence division which handles a long term contract to deliver repairs to the Royal Navy's auxiliary fleet. The firm also singled out strong revenues at its Tyne operation in the final quarter of the year to the end of March 2022 where there had been more use of its dock facilities and larger contracts from new and existing customers, albeit at lower margins.
At the same time, there were fewer fabrication contracts - particularly through the "Future Submarines" programme - resulting in below expectation revenue. A 7% rise in group turnover to £94.3m was set against a backdrop of what A&P said was strong customer loyalty, particularly among clients with smaller dredging and offshore support vessels. Meanwhile operating profit increased marginally from £4.8m to £4.9m.
