Supply chain firm Umeco has revealed revenues have risen by 12.7 per cent in the first two months of the year.
Warwickshire-based Umeco (UMC), which revealed last week that a £145 million deal to dispose of its Pattonair supply chain business had been concluded, said it was benefiting from focusing on its core business of advanced composites.
In a trading statement ahead of its annual general meeting, the company said aerospace and defence revenues, which accounted for 32.5 per cent of group revenue in the period, grew by 4.4 per cent.
Meanwhile, income from structural materials grew by 18.2 per cent – 10 per cent of which came from its lower margin European distribution business and process materials grew its revenues by 5.2 per cent.
The company added: “Both our business streams have seen further increases in raw material prices during the period, however it appears that the rate of increase is now slowing. We continue to monitor input costs closely in order to protect our margins.”
The group also revealed that revenues in the wind energy market, which accounted for 11.8 per cent of revenue in the period, grew by 2.6 per cent. It said the “modest” rate of growth reflected destocking in its distribution channel ahead of the start up of a joint venture which, later this year, will begin to manufacture vacuum bagging films in China.
The group added: “We expect the revenue of the group’s continuing operations for the six months to 30 September 2011 to reflect the growth rates experienced in the first quarter. Margins, and therefore profit, in the six months to 30 September 2011
will however reflect the expansion of our lower margin distribution business and the investment being made to expand our manufacturing capacity.”
