A closure-threatened maker of advanced electric battery systems saw losses grow to more than £5.5 million in the last financial year.
Around 60 staff at Dundee-based Johnson Matthey Battery Systems (JMBS) were placed on notice of redundancy last month after parent group Johnson Matthey decided to rein back spending in the area.
At the time general manager Anne Risse said the former Axeon battery plant at Wester Gourdie Industrial Estate along with sister facilities in Coventry and Gliwice in Poland had not delivered the results expected.
New accounts posted with Companies House show for the first time the true position of the company. Turnover in the year to March 31 increased significantly from £4.87m in 2014 to £8.26m.
Cost of sales in that period grew from £6.93m to £9.97m, producing a gross loss for the year of £1.7m, less than the equivalent £2m loss of a year previously.
However, a more than doubling of administrative expenses to £3.22m put significant pressure on the business, and the total loss before tax jumped from £3.99m to £5.5m for the year.
In his strategic report to the accounts, company secretary Simon Farrant said JMBS was engaged in the manufacture of high-performance battery packs predominantly using lithium-ion cell technologies for a mix of automotive and industrial customers.
Mr Farrant said the company’s main revenue stream came from development projects with clients and an inability to win such projects, or a worsening of the commercial terms on which they were based, could have a material impact on the firm.
He also cited the cost of lithium-ion cells as a risk but said new work inquiry levels had been “strong”.
Mr Farrant said: “The year saw turnover increase from £4,870,000 to £8,268,000 as one of the company’s main customer projects reached the production run phase, and customer inquiries remain strong.
“The business carried on investing heavily in research and development, leading to an increase in operating loss of 36% year on year.
“The net liabilities increased from £16,993,000 to £21,314,000 due to increased funding from the parent company to cover losses incurred in the year.”
A spokesperson for Johnson Matthey last night said there was no immediate update on the JMBS redundancy consultation, but the process is still expected to be complete by the end of the year.