Business

Profits fall back at Moyola - but engineering giant eyes global growth

Mark Semple of Moyola Precision Engineering with Invest NI head Alastair Hamilton at an announcement in January that the firm was investing more than £10m in its Castledawson operation. The company has just released its annual accounts for the year to March
Gary McDonald Business Editor

CASTLEDAWSON-based manufacturer Moyola Precision Engineering has seen both its turnover and gross profit fall back in the last trading year.

But the company, founded in 1976, it still on target to generate millions more of additional sales by 2021 as it bids to become a key supplier in the global aerospace sector.

Accounts for the year to March 31, filed at Companies House, shows that the Co Derry firm's turnover slipped back to £15,639,425 from just shy of £18 million the year before.

Gross profit came in at £3,048, 272 against £3,397,395 in 2017, but its margin increased from 18.9 per cent to 19.5 per cent over the period.

Profit for the year after tax was £1,971,547 compared to £2,602,449 in 2017.

Moyola, a sub-contractor to the aerospace, transport, material handling, defence, medical devices and IT industries, saw its payroll generally static at 114 members of staff (117 in 2017), with its salary bill coming in at £3,336,357 (against £3,510,880 before).

The business also paid dividends of £7 million to its parent Moyola Group (2017: £482,000), which is says will be used to support future investment in complementary activities.

Moyola, which in recent years has become a respected supplier to Bombardier Aerospace as well as providing supplies for both Airbus and Boeing, says the results for the year were "satisfactory", having been achieved in "a challenging operating environment".

In January Moyola Precision Engineering announced plans to invest more than £10 million in facilities over four years in a bid to become a global supplier in the aerospace sector.

It will invest in manufacturing facilities, equipment and technology at its Castledawson facility with the aim of boosting revenues by £12.4 million and staff numbers by around 50 by 2021.

“This investment in new technology will drive efficiencies across the business and enable us to target new aerospace programmes,” managing director Mark Semple said at the time

“Our new dedicated titanium machining capabilities addresses a key weakness in the wider British aerospace supply chain and provides us with key learning and development opportunities that will position us at the leading edge of aircraft manufacturing.”

Invest NI is backing Moyola's plans with a £1 million contribution towards the investment plan.

“The continued support of Invest NI has been invaluable and its support with this investment will help ensure we have the technology in place to meet future market demands,” Mr Semple said.

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