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Tayside turbine repair firm ATL weathers ‘major challenges’ of rising costs

ATL Turbine Services' electricity bill increased by 30% to about £40,000 a month.

ATL Turbine Services chief executive Dale Harris with the companys new furnace
ATL Turbine Services chief executive Dale Harris with the companys new furnace.

The boss of Tayside turbine repairs firm ATL says the business has faced “major challenges” in the past year.

Dale Harris is chief executive of ATL Turbine Services, which works across the defence aviation, civil aviation, industrial and marine sectors.

Mr Harris said the firm had endured a challenging 2022 but that its financial results had stood up well.

Last year he told The Courier the firm’s electricity bill increased by about 30%, to about £40,000 per month.

At the time, Mr Harris also said metal prices have sharply increased – up as much as 50% – and raw materials were increasingly hard to come by.

Newly published accounts show the firm’s turnover rose slightly for the year to June 2022, from £7.3 million the previous year to £7.4m.

However its profits fell from £1.2m in 2021 to £1m over the period.

Costs soared for Tayside turbine firm

Mr Harris said: “Like all companies, ATL has had significant challenges this year.

“Business costs rose strongly, especially energy, which had a major impact on profitability.

“Across the country, most companies are facing significant costs being added to their business.

“There is only so much that can be done to offset these through maximising efficiencies.”

ATL made a total of £5.1m UK sales and £2.2m to the rest of the world.

The UK figure was a drop of £157,466 on the previous year, while the rest of the world figure rose by £172,574.

ATL refurbishes late-life aero and light industrial turbine parts, giving them the same integrity and durability as new components.

Ronnie Scrivener, an aero Inspector looking at the quality of a gem casing.
Ronnie Scrivener, an aero Inspector looking at the quality of a gem casing.

This provides a cost-effective alternative to purchasing new parts, which in some cases can be difficult to procure.

Mr Harris said export business continues to be impacted post-Brexit.

“The UK is certainly harder to do business with than it was before,” he said.

“Exports continue to be impacted by the additional administration and costs of moving goods in and out of the UK to Europe.”

Major contract extensions for ATL

Meanwhile the firm’s accounts also show a slight rise in its wage bill.

ATL employs 83 people at its Baldovie site, and its wages for the year rose by just under £20,000, to £2.39m.

Despite the challenges the firm has faced, Mr Harris was pleased with the performance of the business.

ATL Turbine Services chief executive Dale Harris.
ATL Turbine Services chief executive Dale Harris.

Its work during the year included securing contract extensions with ATL’s major customers and bringing in new business.

He said that was a “very positive outcome in an otherwise challenging year”.

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