Directors at the Arbroath arm of global precision engineering group Amtek expect new business from the automotive sector to generate “substantial” revenues for years to come.
Documents filed at Companies House show the board of Elliot Industrial Estate-based Interplex PMP are optimistic about the future following a turnaround regime and heavy programme of investment.
Accounts for the 12 months to the end of March reveal how revenues climbed 7.5% to £11 million during the year with pre-tax profits at the manufacturing site, which employs around 130 people, rising 10-fold to £289,155.
The plant produces metal and plastic components, mouldings and small assemblies for use in the car manufacturing, telecommunications, electronics, computer and medical industries.
Interplex directors said the company continued to invest in resources for contract programmes which began production during the year in question. They expect sales to jump in the coming year as a result.
“We anticipate that demand for these programmes will continue to grow and the benefit of full production will be achieved during the forthcoming year to March 2015,” the directors said in their report.
“These programmes are expected to generate substantial revenues for many years and, equally importantly, have opened up new customer relationships with opportunities for further awards and growth.”
Profit margins improved 0.5%, with £706,492 spent on new plant and machinery from the company’s own working capital.
Singapore-headquartered Amtek agreed a $210m deal to buy the wider Delaware-registered Interplex Industries group earlier this year, boasting that a new combination between the two would create a global leader with a large blue-chip client base.
The enlarged business will have revenues of around $1 billion, from 15 countries, and more than 13,500 employees.
While the two companies’ technologies are related, there is little overlap. They also operate in distinct geographies, helping create what Amtek called “significant growth opportunities and synergies”.
Interplex PMP was founded in Arbroath in 1968, the first overseas manufacturing plant opened by its parent company.
It has since added locations in France, Germany, Hungary, Mexico, India, China, Korea and Malaysia to its portfolio.
Announcing the deal in March, Amtek chairman and chief executive Daniel Yeong said he believed that the two teams’ “combined skills and know-how” would propel his group to bigger and better things.
Interplex chief operating officer Steven Feinstein said the tie-up would build on his firm’s record in application design and miniature engineering.
“We are confident this transaction is the right direction for our customers, our staff and our business, and we look forward to working with Amtek on the next phase of Interplex’s growth,” he said.