A historic Dundee company with a portfolio extending from metals production to the manufacture of insulated glass units has been hit by a slide in pre-tax profits.
Malcolm, Ogilvie & Company – which is based at Constable Works on West Pitkerro Industrial Estate – yesterday reported a pre-tax profit of £153,423 for the year to October 31, 2013.
The figure was more than half a million pounds below the £660,698 made by the group in the previous 12 month period.
Accounts newly filed with Companies House show that group-wide turnover fell by more than a fifth in the period from £14.55 million to £11.39m.
The firm – which has been trading for 167 years and which is one of the few companies left with direct links to Dundee’s jute industry – said the fall in revenues was primarily as a result of a loss of sales from its foundry division.
The company moved to close the doors of its Dens Metals outfit in April last year after the business came under increasing presure from competitors overseas.
In his directors report on behalf of the board, chairman and joint managing director Nicholas Cunningham said the overall financial result for the group was “acceptable under all the circumstances.”
“The foundry divisions succumbed to world market pressures and as a consequence it was the decision of the directors to enter into an orderly run down of the business during the latter half of the year under review.
“Industrial glass performed broadly similar to the prior year and to budgeted forcecasts, with the customer base seeing strengthening during the period.
“Photovoltaic activity was reduced as a consequence of the lower levels of governmental provision and promotion of Feed In Tariffs.”
A total of seven companies – four of which are dormant – come under the Malcolm, Ogilvie & Company umbrella including photovoltaics supplier and installer Discovery Solar Systems.
However, the largest of the group concerns is Ravensby Glass which operates out of a major manufacturing unit at West Pitkerro Industrial Estate.
The company employed an average of 85 staff a month in 2013 – up from 75 in 2012 – the majority of which were dedicated to the production of industrial glass units, with the remaining 23 making up the administration and sales force.
Turnover for the year increased by £237,580 to £7.2m but pre-tax profits in the division fell from £179,917 to £63,063.
Mr Cunningham – who is a also a director of Ravensby – said he expected the firm to benefit in the months ahead as prospects for the sector improved.
“Further advances in the overall market position continue to be envisaged,” Mr Cunningham said.
“And with the ongoing changes in construction industry legislation likely to continue to stimulate and maintain demand for the company’s products its commitment to furthering the development of its products is considered paramount to the company’s progress.
“The pursuit of other market opportunities, in particular with painted and processed products is ongoing, and all steps possible will be taken to advance these. Further investment in plant and machinery to service the commercial market is also planned.”
Ravensby is in the throes of setting up a second manufacturing facility in Dundee to produce coated glass in larger sizes than it currently makes at its existing plant.
The firm was extended a £475,000 regional selective assistance grant offer by Scottish Enterprise in late 2013. The agency said the investment would help safeguard 20 jobs within Ravensby and create a further 35 posts.