North East chemicals firm Thomas Swan & Co says it is working towards growth having seen a modest growth in turnover.
The County Durham firm makes a range of chemicals including products used in the production of latex gloves and tyres and graphene. New accounts for the Consett-based manufacturer, which also operates bases in the US and China, show turnover increased from £36.6m to £37.9m in the year to the end of March 2022.
It was a year in which the 177-strong firm saw pre-tax profits jump to £3.3m from £187,586 thanks to gains on the sale of its graphene patent and know-how to a joint venture business it set up with Canadian mining and mineral operator Mason Graphite. As part of a £3m deal, Thomas Swan acquired 33.33% of Black Swan Graphene - a company set up to establish large scale, commercial graphene production at a factory in Québec.
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Recently, Black Swan announced an equity swap partnership with UK-based Nationwide Engineering Research and Development Ltd which will see the joint venture's graphene powders used to make stronger concrete - or Conretene - for the projects it delivers for the likes of Heathrow, National Highways and the Nuclear Decommissioning Authority. The move is expected to bring global engineering consultancy Arup into the supply chain.
On Thomas Swan's own profit and loss sheet, operating losses of £23,665 were reported due mainly to depreciation expenses and spending on research and development activity.
Harry Swan, chief executive officer of the family-owned business, said: "Like many businesses, over the past few years we have had to adapt to a remarkably changeable and challenging environment. Global supply chain issues, the Covid pandemic and more recently the energy crisis caused by the war in Ukraine, have all caused unforeseen and significant challenges to the business.
"I am therefore pleased that we managed to achieve a relatively stable set of results in the 2021/22 financial year, predominantly due to the sale of our graphene technology. We have seen underlying lower levels of profitability continue during the last twelve months due to the unprecedented cost of energy. Looking ahead, we are forecasting an improved year helped by reduced energy costs and a strong order book. We will continue to prioritise investment in new product development to ensure the growth of the business in the medium to long term.”
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