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Revenues climb at aerospace giant

One of the UK's largest aerospace component manufacturershas hailed a period of "sound progress" during which revenues climbed.

One of the UK's largest aerospace component manufacturers, whose clients include the likes of Rolls-Royce and Airbus, has hailed a period of "sound progress" during which revenues climbed.

Gardner Aerospace makes complex machined and sheet metal fabricated detailed parts. It employs more than 2,000 staff worldwide, hundreds of which are based in the UK.

Newly filed accounts for the 16 months to 31 December 2017 revealed sales reached £203.4m (annualised £152.6m), an increase of 15.7 per cent.

Gross profit margin was £48.5m (£36.4m annualised), a dip of 1.5 per cent, which Gardner said reflected the "competitive nature" of the aerospace sector. Annualised operating profit nudged up by £500,000.

In November 2016, Shaanxi Ligeance Mineral Resources Co Ltd (SLMR) announced it was to acquire Gardner. The deal completed in June 2017.

A statement signed off by Gardner's board said: "The financial performance of the business is positive and the balance sheet has further strengthened.

"The board believes the business is well-placed to benefit from the continued growth of the aerospace sector, both with its existing and new customers, and will now gain from the access to new markets provided by its ultimate holding company SLMR."

Since its year-end, Gardner has acquired North East counterpart Northern Aerospace, in a deal with a £44m enterprise value.

The company secured a £90m package with NatWest to fund the transaction.

Gardner said the move formed part of its strategy to develop the business and take advantage of customers' desire "to have fewer and larger suppliers".

The company also vowed to invest in existing facilities and new equipment in 2018, particularly in Poland and India, as well as developing a new site in China.

Gardner is headquartered in Derby and has UK sites in Broughton, Hull, Basildon and Pershore in Worcestershire.

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