A Fife semiconductor company has remained in profit despite a fall in revenue from China.
Glenrothes-based Semefab saw turnover fall by 18.3% from £12.2 million in 2018 to £10m for the year ending October 31 2019. Pre-tax profits fell from £509,000, to £113,510 over the period according to newly filed company accounts.
The firm produces sensors for the security, automotive, medical and industrial sectors. In the company’s annual accounts, managing director Allan James said 2019 had been a “year of consolidation” against a backdrop of losing light sensor business in China.
A combination of strong competition from Chinese manufacturers and a weaker market due to US President Donald Trump’s America First policy also had an impact, while a health scare around e-cigarette vaping hit the sale of low-pressure sensors.
Mr James said: “As a result of these factors, Semefab has concentrated on new developments in gas flow sensing, pressure sensors and thermopiles, working hard to save on costs, direct labour and high efficiencies.”
When Covid-19 pandemic restrictions were introduced, the company was designated as an essential services provider due its thermopile capability for non-contact people temperature measurement.
Thermopile chips are rated as one of the best instruments to take an accurate measurement of human body temperature, absorbing infrared radiation to help record a reading.
The firm’s low-pressure sensors are also used in other medical equipment, including respirators and ventilators. Other products made by Semefab are also used in MRI, CT and X-ray scanners.
Mr James said these products meant the firm had not been impacted adversely by Covid.
He said: “Whilst the upsurge in demand of Covid-19-related products is a bubble, we believe the benefit in terms of sales will ensure a reasonable financial performance by year end 2020.”
In April, the firm revealed it was working to supply more than 10 million temperature measuring chips, along with other technical supplies, to help in the global fight against Covid-19.
In May, Semefab, working with academics from the University of the West of Scotland, produced innovative thin film-based chips for use in non-contact thermometers. The company has a headcount of 117.
jimillar@thecourier.co.uk
