Profits hit but Darwen firm still upbeat (From Lancashire Telegraph)

Profits hit but Darwen firm still upbeat

11:33am Tuesday 31st August 2010 in

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A GROWING engineering firm in Darwen has seen profits fall by more than half.

But directors say it is well placed to ride out the tricky economic climate.

Profits after tax at WEC Group, a welding engineering company based in Junction Street, were £796,317 for the year ending December 31, 2009, compared to £1,657,169 the year before.

Turnover, however, had increased during the same time from £20.65million to £21.49million.

Directors of the company said overheads had increased as a direct result of the opening of the new 25,000sq ft manufacturing unit begun during 2008.

They said the biggest problems facing the company were raw material prices, competitive pressures and payment default by customers.

In a report, they said: “The company has strong financial resources and has need for only limited borrowing facilities due to its strong liquidity position.

“As a consequence, the directors believe that the company is well placed to manage its business risks despite the current uncertain economic climate.”

In May, WEC Group snapped up a Blackburn-based rival, Nutter Aircrafts Limited, a precision-engineering company founded in 1939.

Bosses said the acquisition, for an undisclosed sum, would allow WEC to expand and create more jobs.

The addition of Nutter Aircrafts’ 22 staff will mean the enlarged WEC Group has around 275 employees.

Staff costs, including wages, social security and pension costs for the year ending December 31, 2009, were £7.52m, up from £7.14m the year before.

Founded in 1979 by Steve Hartley and Ross Place, WEC Group Ltd is one of the largest groups of its type in the North West.

The company comprises six divisions specialising in different aspects of fabrication engineering.