Mettis Group poised for strong recovery and regrowth
Mettis Group’s latest annual results for 2019 show that the company entered the Covid-19 pandemic in a strong financial position following another year of growth. Group sales increased by £3.6m (4%) to £86.1m (£82.5m in 2018) and underlying EBITDA increased by £1m (7%) to £15.6m (£14.6m in 2018).
Growth was primarily driven by increases in demand for products we manufacture for a variety of leading aircraft programmes as well as the introduction of new products to market.
Our strong financial position, product diversification and agile leadership have enabled us to respond rapidly to the pandemic. At the peak of the outbreak, 70% of aircraft were grounded and airline traffic was reduced by 95%. Like many other companies operating in the aerospace market, we had to proportionally scale our operations in line with reduced demand from industry primes including Airbus, Boeing, Rolls-Royce and Spirit Aerosystems while maintaining all core capabilities.
We remained operational throughout the pandemic due to continued commercial aerospace demand, albeit at significantly reduced levels, together with maintaining an uninterrupted supply across a number of UK defence programmes. When the pandemic began, the Ministry of Defence confirmed our employees were essential workers due to our position within the UK defence supply chain.
Our response to the pandemic and historical delivery track record provided confidence to our majority shareholder who has provided additional funding and negotiated a two-year extension to banking arrangements.
We were well placed for growth prior to the pandemic and remain in a strong position as the aerospace industry recovers:
- £10.4m was invested during 2019 in equipment, technologies and site enhancements including a new UK factory with advanced machining capabilities, bringing total capital expenditure over the previous four years to over £27m. This continued investment in automation, new technologies and capabilities provides a strong platform for regrowth;
- We are the nominated, single-source supplier for the majority of our products, with long-term agreements in place;
- We have retained all our core capabilities, facilities and skills; and
- Airlines are expected to introduce new fuel-efficient aircraft into their fleets with many predicted to bring forward replacement plans.
Gordon Fraser, Chief Executive and Group Executive Chairman said, “Mettis’ period of uninterrupted growth had been set to continue for years to come. The pandemic has been challenging for the whole sector but our strong foundation and track record has helped us protect our business during the crisis and prepare ourselves for rapid regrowth as the market recovers.”