The holding company for Glenrothes-based manufacturer FiFab has reported that turnover held up in its latest financial year, despite the onset of coronavirus.
However, FiFab Holdings has also highlighted the pandemic and “extreme” competition for work as risks affecting the continuing growth of the business.
The firm’s turnover was £7.24 million in the 12 months to the end of September 2020 – down only slightly on the £7.34m recorded the year before.
FiFab makes precision sheet metal products, electro-mechanical assemblies and precision machine components.
The firm describes itself as one of the most advanced manufacturers of precision metal work in the UK.
Resilience in the face of pandemic
It is said to have a strong balance sheet, good liquidity and a solid customer base, and operates a Covid-19 secure environment within all recommendations and regulations.
New projects shipped to a range of clients and sectors include laboratory gas generation, audio visual displays and a renewable energy battery storage system.
FiFab says on its website it invests in technology and people that enable it to be flexible to the specific needs of customers.
It adds: “No matter the size of your project, or your sector, we are capable of becoming your fully-integrated team who deliver exactly what you need.
“We will also treat your business like it is our own, delivering the outstanding service, cost and customer management we would expect ourselves.
“It is clear we have learnt a huge amount about ourselves, as a business and as a community since this pandemic turned all our worlds upside down.
“We have remained resilient, and as a team we had to overcome the hurdles that came our way.
“The journey is certainly not over yet and we will keep operating safely and effectively, providing customers with exceptional service.”
FiFab Holdings’ strategic report with its latest accounts says the group will continue to meet the demands of its varied customer base, promoting continuous improvement, people development, best practice lean manufacturing and state-of-the-art technological capability.
Profits down
The directors regard turnover and gross profit percentage as key performance indicators. The latter was 15.4% in the latest year from 16.1% previously.
The accounts posted at Companies House also show that pre-tax profits for the latest year were £108,356 – well down on £558,976 achieved previously.
One factor behind this was a big drop in profit on the sale of tangible assets – down to £8,895 compared to a figure of £340,964 the previous 12 months.
The principal risks affecting the continuing growth of the business are reported to include the uncertain climate in the manufacturing sector as a result of coronavirus restrictions and the extreme level of competition for available work, both from home-based and overseas companies.
FiFab, which is based at Rutherford Road, Glenrothes, was established in 1972.
The average number of employees during the latest year was 107 – down 10 on the previous 12 months.
FiFab is owned and operated by four directors who bought the company several years ago from majority shareholder Archie Smith when he retired.
John Penman, Craig McIntosh, Steven Smith and Roberto Morris were supported by a seven-figure funding package from Bank of Scotland to make the deal.
They established FiFab Holdings to acquire the 100% share capital of Fife Fabrications in October 2017.
