Profits at excavator manufacturer Komatsu UK more than doubled after the firm’s revenues bounched back from three years of decline.
The Birtley-based firm, whose ultimate parent company is based in Japan, has released accounts for the year ending March 31 which show turnover rising from £155.6m a year earlier to £292.3m. Operating profit for the same period increased from £3.4m to £7.4m.
The recovery in the company’s fortunes - which saw its headcount grow significantly to 480 - came as sales in the UK more than doubled to just under £73m while turnover in the rest of Europe also rose significantly to reach £212.3m.
Read more : tech firm to open Newcastle office
In the accounts, directors said that the company had seen a “strong post Covid recovery in European demand for construction equipment after the market was significantly adversely impacted in the first half of the previous year.” They added that the firm would continue to work with its immediate parent company, Komatsu Europe International, to ensure its product offering continued to meet the demands of European customers.
Managing director Paul Blanchard said: “As we move beyond the unprecedented global events that have impacted manufacturers across the world, KUK have seen a return of the volume and subsequently improved annual results following the reduction in the previous year due to the Covid situation. KUK continues to invest in workforce skills, plant and innovation at our Birtley HQ to ensure we remain at the forefront of European excavator manufacturing.”
Komatsu set up in the North East in 1987, helping to pioneer a boom in the region’s automotive and manufacturing sectors and leading the way for other Japanese companies to create jobs in the region. Last year it marked the 100th anniversary of its parent company this year by planting 10 cherry blossom trees and a floral display at the entrance to the Birtley plant.
READ NEXT:
