Permali Registers Strong FY ’20 Results Despite Covid-19, Investing Millions to Drive Growth

October 12 (2020

Permali recorded impressive 2019/20 year-end results despite the pandemic headwinds. The company, which manufactures advanced composites for use in challenging conditions, has forged ahead with double-digit revenue [and profit] growth, a raft of new strategic capital investments and recruitment drive at a time when sector rivals are retrenching.

Key financial highlights include:
• Revenue growth of 13.5% to over GBP 13 million
• Operating profit has increased to GBP 1.2 million
• Development of strong potential sales pipeline of over GBP 75 million over 5 years
• Cash reserves of GBP 5.4 million
• Net asset value of over GBP 7.7 million up 54% YoY

Growth has been driven by a succession of significant business wins in the defense and medical sectors, reflecting expertise in manufacturing materials for specialists in high-stress environments. The strategic decision to focus on these sectors helped offset a small reduction in demand from the aerospace sector, caused by the pandemic.

Highlights include:
• Helping the NHS fight the pandemic and save lives by providing Tuftane for protective membranes and hospital bed mattresses.
• Providing parts for all Formula 1 teams as the season restarted post-lockdown
• Delivering on a significant uplift in demand for land defense vehicle parts, particularly armor panels for the Ajax Tank and Armoured Personnel Carriers, protecting servicemen and women from Small Arms, Rifle and Machine Gun rounds as well as IEDs, Landmines and Shrapnel.
Reflecting this financial success, strong balance sheet and order pipeline, the company has not used the Government CV-19 support schemes. Moreover, the company has turbocharged its hiring plans and brought renewed focus on staff development and technical upskilling.

This year Permali has:
• Converted over 20 temporary employees to permanent to build continuity and skills retention taking the headcount to circa 100.
• An enviable average length of service of circa 10 years, including 48% over 10 years and an industry-leading low staff turnover of circa 5% p.a.
• Recruited six new apprentices, to assist in long term skills retention and employee development.
• Not furloughed staff at any point during the CV-19 pandemic.

To build capacity to fulfil Permali’s order pipeline and three-year growth strategy, the company has begun a major investment program of over GBP 2.2 million, including:

1. A new, in house automated paint plant to deliver better efficiency and quality control.
2. A new five-axis and two additional three-axis computer numerical control machines to support current and future client requirements.
3. A five- axis Water jet cutter.
4. A new assembly line with ancillary processing equipment.

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