Subsea robotics firm Soil Machine Dynamics (SMD) has turned around significant losses as it eyes substantial revenue growth over the next two years.
New accounts for Specialist Machine Developments (SMD) Limited - the UK group behind the Tyneside-based maker of underwater vehicles - show a return to operating profit of £3.8m last year, after an operating loss of £8.4m previously. The firm's chairman Mike Jones said SMD's recovery, which had exceeded 2022 expectations, was built on a solid foundation and that it had ambitions to go further.
The performance saw turnover climb from £24.4m to £39.8m during the year, though still well below highs of £81.3m achieved by the 155-strong firm in the past 10 years. The results come not long after SMD shared plans to open two bases in the region, and target £100m turnover by 2025
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In April, the firm said it was confident it could double turnover of £58m - which was said to include its Shanghai operation - in the next two years. As part of the announcement, it said a customer service centre and a new research and development location were in the works.
Both facilities were expected to lead to job creation including support staff, engineers and software developers. In the latest accounts SMD said that growth - as part of its 'five year horizon' strategy - would mainly be organic. And in a report accompanying the accounts, the firm pointed to several "trading events" during the year, including a downturn in revenues across its trenching business caused by falls in oil and gas prices but the expectation of revived fortunes - including newer renewables work - in 2023.
It also talked up the launch of an electric-powered remotely operated vehicle (ROV) and £15.8m of new contracts won during the year. And across its deck handling systems business revenue of £1.9m was generated with £23.8m of revenue in its services business which includes spares, repairs and upgrades for customers.
Michael Jones, chairman at SMD: "Despite challenging times during the pandemic, with the support of our investors, we have continued with our long-term strategy to balance the business between equipment and services, investment in our innovation developments and the continuous improvement of our operations.
"Together with the long-term partnerships we always seek to develop with our clients, and the great team at SMD, this laid a solid foundation for recovery in our revenues and profits in 2022. As we continue into 2023, we seek to build on this further."
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