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Subaru UK sees 40% sales surge but profits dip amid supply challenges

2025-04-11 08:43:13 By

Subaru sales increased in the UK in 2023. (Photo by Robert Hradil/Getty Images)

Sales at Subaru UK, the importer of Subaru cars in the country, have soared by over 40% during its latest financial year, despite a supply and demand imbalance.

The Solihull-based company has disclosed a turnover of £75.9m for 2023 in its latest accounts filed with Companies House, marking a significant increase from the £48m recorded in the previous 12 months.

However, despite this surge in sales, the firm saw its pre-tax profit drop from £3.9m to £1.3m over the same period, as reported by City AM.

A board-approved statement read: "The directors were satisfied with the company's progress and performance during the year."

It continued: "The current year's result was positive, albeit the company's volumes were restricted by worldwide demand for passenger cars outstripping supply, particularly impacting the first half of 2023."

The statement also highlighted that "The company's working capital saw a move to normalised stock levels and vehicle margins were strengthened as a result of the pound's strength against Japanese Yen."

Looking ahead, the directors are upbeat about 2024, noting: "Subaru UK has refined its dedicated internal management structure which is positive for the brand and the relationships with the manufacturer."

Moreover, the company reported: "Franchising activity and interest from potential franchisees remains positive."

The statement concluded with an optimistic outlook: "The directors remain positive about the future of the brand and achievement of 2024 budgets."

"The directors are focused on developing the UK network and ensuring it has a sustainable future."

"2024 sees investment of margin in dealer incentives and brand marketing. The board is committed to the brand and looks to adapt to new product and future growth."

Subaru UK, which falls under the umbrella of International Motorsalso known for importing car brands such as Mitsubishi Motors and Isuzuhas reported its latest financial outcomes.

In the corresponding financial period, International Motors achieved a turnover climb to £20m from £10.5m, whilst witnessing its pre-tax profit soar from £34.6m to £43m.

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Somerset manufacturer sees profits soar in first half

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Aston Martin secures £135 million in new funding to boost production capabilities

Aston Martin has secured £135m through a debt placement as it prepares to bolster its balance sheet ahead of an anticipated production increase later this year. The luxury car manufacturer announced that it had raised approximately $90m (£70.7m) by issuing 10 per cent senior secured notes, and an additional £65m through 10.4 per cent senior secured notes, set to mature in 2029. The net proceeds from the offering are projected to be utilised by Aston Martin to repay borrowings under its existing super senior revolving credit facility. The automaker has been grappling with a growing debt pile since its listing in 2018. Billionaire chair Lawrence Stroll has previously sought additional funds from the firm's backers, which include Chinese carmaker Geely. In March, Aston Martin - which is based in Gaydon, Warwickshire, with a manufacturing plant in St Athan, South Wales - successfully carried out a £1.15bn refinancing operation in an effort to secure its position, as reported by City AM. This comes as losses expanded over the first half, preceding the eagerly awaited launch of several models in the latter half of the year. Doug Lafferty, Aston Martin Chief Financial Officer, said in a statement: "Last week at our first half 2024 results we highlighted the positive progress made by Aston Martin so far this year as we continue to execute our immense product transformation, which will support volume growth and sustainable positive free cash flow generation later this year,". He further stated: "Following positive feedback after the results from the capital markets with encouraging demand from the Company's existing bond holders, we are pleased to announce today that we have successfully priced a £135m equivalent private placement." "These new senior secured notes, along with the refinancing completed in March 2024, provide Aston Martin with additional liquidity as we continue an exciting second half of the year."

Hill and Smith shares tumble after UK business weighs on bottom line

Shares in infrastructure supplier Hill and Smith took a hit this morning as the company highlighted difficulties within its UK business. Despite a 10 per cent increase in pre-tax profit to £63.2m for the six months ending in June, and a slight 0.4 per cent rise in revenue to £422.7m, the London-listed firm noted its UK segment had experienced a "more challenging market backdrop, with reduced demand across certain public sector customers." "The second half outlook for our UK businesses is likely to remain challenging given budgetary pressures in the public sector, however we are cautiously optimistic for some level of recovery in 2025," it added. Shares dropped by over seven per cent in early trading. CEO Alan Giddins commented on the company's "good first half performance, underpinned by continuing strong demand for our products and services in the US and the strong performance from our most recent acquisitions. We expect this momentum to continue into the second half in line with our recently upgraded expectations." "In the medium to longer term, the group is well positioned in infrastructure markets with attractive structural growth drivers." During the half-year period, the company completed three new acquisitions, including a £10m takeover of Trident Industries, totalling £22.3m, as reported by City AM. Giddins noted: "This strong position, together with our ability to use M and A to access new customers, markets and adjacent technologies, and the benefits of our agile operating model, underpins our confidence in the group's positive trading outlook." The dividends per share experienced a 10 per cent increase to 16.5p.

CMO hails early signs of recovery as consumer confidence softens sales fall

Online-only building materials firm CMO, based in Plymouth, has reported that improved consumer confidence in recent months has helped to cushion against dropping sales. The company noted a modest rise in sales during the quarter ending July 31, 2024, following dampened demand due to wet weather in the first quarter of the year. This led to a reduced like-for-like sales drop of 17 per cent from the same period the previous year, outperforming the 21 per cent slump seen in the three months ending March 31, 2024. Among its divisions, the plumbing business performed the best, registering a sales decline of just 12 per cent over half a year and an increase by nine per cent come July, as reported by City AM. However, sluggish demand took a toll on its tiling division, leading to a six-month sales fall of 36 per cent and a 27 per cent drop in July alone. Despite such hurdles, CMO remains "optimistic" about seeing ongoing sales growth based on "developments in the market" and the recent interest rate cut. The firm also indicated that the average value of orders was improving as consumer confidence bounced back, encouraging larger repair, maintenance and improvement projects consistent with wider market trends. The CEO Dean Murray expressed his pleasure at these early signs of market recovery whilst adding that last week's interest rate cuts further buoy up the market. "The full launch of the landscaping superstore marks further, great progress in our mission to provide our customers with everything they need to build or maintain a home." "We also look forward to seeing how the 'Super Rewards' programme enhances customer loyalty as it rewards for spend and behaviours."

Tata Steel £100m transition fund sees its first release of money

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Money will also be available to workers affected by the transition, helping them find new jobs, access training, and gain skills and qualifications in areas where there are vacancies. Ms Stevens, who chairs the Tata Steel/Port Talbot Transition Board, has also confirmed that 50 businesses so far have signed a pledge to support any workers forced to leave their jobs in the steelworks. The businesses, which include Fintech Wales (the umbrella body for the fintech sector), the Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering, and Pro Steel Engineering, have committed practical support for workers ranging from guaranteed interviews for anyone made redundant to providing training and coaching. Ms Stevens said: “Under this government, the transition board has moved from discussion to delivery. The release of an initial £13.5m in funding demonstrates that we will act decisively to support workers and businesses in Port Talbot, working with Welsh Government, unions, and the wider community. "Negotiations with Tata Steel on the future of the site will continue separately. But this government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens. “We are also harnessing the generosity of the local community, with dozens of employers so far pledging practical support for workers. Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.” The £500m commitment to Tata’s £1.2bn arc furnace investment from Mr Sunak’s government was not signed off ahead of the General Election. The new Labour Government is committed to a £2bn fund to support the decarbonisation of steel in the UK. This could see it also supporting the transition to green steelmaking at the UK’s only other remaining UK blast furnace operation at Scunthorpe in Chinese-owned British Steel. Labour figures had called, in line with steel unions, for Port Talbot’s blast furnace No 4 to remain until the end of its operational life in 2032 -giving more time to work up plans for less polluting methods of primary steelmaking, potentially through the use of hydrogen and investment in carbon storage and capture. However, while the UK Government continues to talk to Tata over the future of Port Talbot, there seems to be an emerging acceptance that Tata, which says its UK operation is making losses of £1m a day, will not deviate from its arc furnace timetable. Following the closure of blast furnace No 5 earlier this summer, the remaining No 4 will close at the end of September. The last shipment of coking coal and iron into the harbour will be later this month, with its sinter plant closing ahead of the blast furnace next month. The plant’s hot strip mill will continue making coil steel for its downstream business from two million tonnes of imported substrate before the electric arc furnace becomes operational in 2027 or 2028. The ending of primary steelmaking will see around 1,900 job losses at Port Talbot, making up the lion’s share of the initial 2,500 jobs going across all of Tata’s UK operations, which includes its downstream operations in Wales at Trostre, Shotton, Llanwern, and Caerphilly. Port Talbot, where some staff have already left but with the process accelerating from the autumn, have identified around 300 staff needed for decommissioning work. However, once the arc furnace is operational, the direct workforce at Port Talbot is expected to be around 1,500. The impact of the ending of heavy steelmaking will also be felt amongst contractors and the wider supply chain. It has been estimated that for every direct job at Port Talbot a further 1.2 are supported. A planning application for the electric arc furnace is expected to be submitted by Tata to Neath Port Talbot Council in November, which, if approved, should see spades in the ground next summer. The arc furnace will take around three years to become operational. Tata will look to sell off some of its land around the decommissioned blast furnaces to the harbour. However, at this stage, it has not been determined what the cost of land remediation would be -and whether Tata would get any government support -to make it fit for other uses. While subject to market interest, it could potentially form part of the new freeport covering the ports of Port Talbot and Milford Haven under the Celtic Freeport banner. It is hoped that the freeport will create significant jobs and investment in new supply chains needed for new offshore floating windfarms in the Celtic Sea, for which bidders are now being sought under a new licensing round from the Crown Estate. Tata will maintain around 80% of its existing site. Community's National Officer for steel Alun Davies said: "We welcome this announcement, which demonstrates that the UK Labour Government is stepping up to provide support both to workers affected by Tata's decarbonisation plans, and to the wider community in and around Port Talbot. The Welsh Secretary Jo Stevens has acted at pace to ensure that this first tranche of funding can be released as swiftly as possible, and we thank her for her steadfast commitment to our steel communities. "We are also particularly pleased that this announcement includes support for contractors. In our regular meetings with the UK and Welsh Governments, Community reps and officials have stressed that this vital part of the workforce needs to be included in any package of support, and we are glad that both administrations have listened. "Whilst we welcome this announcement, it is important to stress that our wider position on Tata's bad deal for steel has not changed. We will continue to oppose the company's damaging proposals, and we will fight to protect jobs. It remains our firm belief that no compulsory redundancies are necessary, and that an alternative approach is still possible." Welsh Conservative Shadow Minister for Economy and Energy, Samuel Kurtz MS said: "Welsh Conservatives welcome the release of funding for Port Talbot steelworkers. “The Conservatives ensured that this substantial sum was earmarked for steelworkers, but it remains a question; whether the Labour UK Government will explicitly promise to honour the £100m fund in full.

Sewtec Automation acquired by US group Automated Industrial Robotics Inc

Yorkshire's Sewtec Automation has been sold to Los Angeles-based Automated Industrial Robotics Inc (AIR) in a move said to strengthen the firm. The Wakefield maker of automated systems for manufacturers - ranging from pharmaceutical producers to pet food brands - has been sold by Leeds-based investor Endless LLP, which backed the management buyout of the firm in 2017. The undisclosed deal brings the £18.8m turnover business into the portfolio of AIR, which was launched earlier this year by US-based private equity firm Ares Management Corporation, and includes other similar firms Totally Automated Systems and Modular Automation. It follows Sewtec's expansion into its 75,000 sqft design and production facility at Silkwood Business Park four years ago, where it now employs more than 170 people and is said to have built a strong order book. It also has a satellite office in Taunton with sales predominantly coming from the UK, but also some overseas. Read more: Barratt's takeover of Redrow to be cleared by competition watchdog Read more: Ticketing machine specialist Cammax snapped up by Canadian group Modaxo AIR executive chairman Brian Klos and chief executive officer Darragh de Stonndún said: “The acquisition of Sewtec represents a significant milestone for AIR. We have long been admirers of the quality of the automation solutions Sewtec has developed for their loyal customer base. We believe that sharing the respective strengths of Sewtec, TA Systems and Modular through AIR will help accelerate our businesses’ abilities to enhance efficiencies, drive technological innovation and deliver industry-leading automation solutions to our partners.” Mark Cook, co-managing director of Sewtec who joined the business at the time of the Endless-backed buyout has now become chief operating officer of AIR. He said: "This transaction represents an exciting new chapter in Sewtec’s long history. I believe AIR is the right partner for Sewtec as we look to grow our business with existing and new customers. We look forward to leveraging the skills and know-how across AIR to further our ability to invent innovative solutions that help our customers solve complex operational challenges. "As chief operating officer of AIR, I look forward to working with team members across the company to execute on our shared vision of creating a cohesive, global industrial automation platform.”

Humber Freeport helps to secure £250m investment by Mitsubishi Chemical Group

A global chemicals giant has announced a £250m expansion at its Hull site in moves which will create a number of new jobs. Mitsubishi Chemical Group UK Ltd has committed to invest in a new production line at Saltend Chemicals Park, based within one of the three Humber Freeport tax sites. Preparatory works have started to make way for construction of the new production line, which will double Mitsubishi Chemical Group’s capacity at the site, east of Hull. The investment in a second production line will create dozens of new jobs, adding to the existing 130 workers. The new production line is expected to become operational in 2026. Saltend Chemical Park’s status as part of Humber Freeport’s Hull East tax site has been a key factor in securing the investment, and Mitsubishi Chemical Group also plans to extend its lease with the park’s owner and operator, px Group, until 2060. The new production line will help to meet growing demand for SoarnoL, the brand name for a grade of Ethylene Vinyl Co-Polymer (EVOH) which is primarily used in food packaging to extend product shelf life. Since opening in 2002, Mitsubishi Chemical Group’s Saltend facility has seen a significant increase in demand for SoarnoL, driven by food manufacturers seeking packaging that can be recycled while also having a lower environmental impact. The investment will also strengthen trade links between the Humber and the rest of the world, as 95% of production from the facility at Saltend exported. Peter des Forges, managing director, Mitsubishi Chemical Group UK, said: “Once the new line is operational, the majority of the increased production will service the needs of our customers in more than 40 countries who continue to explore ways they can reduce waste and meet environmental targets.” The £250m Mitsubishi Chemical Group development adds to £1bn of investment which had already been committed to Humber Freeport tax sites. Investments already announced within the Hull East tax site include Pensana’s rare earth processing facility and Meld Energy’s proposed green hydrogen plant, both also based at Saltend Chemicals Park. Humber Freeport chair Simon Bird said: “We are delighted that Mitsubishi Chemical Group has chosen to make this very significant new investment at Saltend on a site benefiting from being within the Humber Freeport footprint. The substantial advantages offered by freeport status were an important factor in securing this new inward investment. “It supports Humber Freeport’s mission to attract significant investment and create new, highly-skilled jobs and aligns with two of our key areas of focus – advanced manufacturing and decarbonisation.

Robotics firm Tharsus sees turnover drop after Ocado partnership ends

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Bridgwater nutraceutical manufacturer merges with Swedish firm

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More than 380 skilled jobs could be created at major Humber carbon fibre facility

More than 380 jobs could be created at a Humber carbon fibre facility after a US firm founded by a former Tour de France winner picked the region to be the plant’s UK location. LeMond Carbon, founded by Greg LeMond, a three-time winner of the yellow jersey in the 1980s and 1990s, has submitted plans to create a new carbon fibre production facility and office development on Land at Energy Park Way, Grimsby. Documents lodged at North East Lincolnshire Council detail how the company, based in Tennessee, has Government support for its plans to create the huge facility in Grimsby, as part of its ambitions to commercialise what it describes as the first major breakthrough in carbon fibre processing technology in decades. Permission is being sought for two carbon fibre production buildings at the site, each measuring around 143,000 sq ft, as well as offices, storage facilities, a sizeable car park, together with associated roads and services infrastructure and landscaping. If approved and once complete, the plant could create up to 384 jobs, with many more created or sustained in the supply chain. Read more: 250 jobs cut at Sheffield construction supplier Sig Plc Find more Yorkshire and Humber business news here In its planning statement, agents DWD Ltd say: “LeMond Carbon UK Limited (LeMond) is commercialising the first major breakthrough in carbon fibre processing technology in over 40 years. Its objective is to disrupt the global carbon fibre manufacturing industry, with a focus on the massive opportunity in offshore wind and hydrogen propulsion. “LeMond specialise in the manufacturing of carbon fibre and are seeking to commercialise a new technology for manufacturing carbon fibre that is greener, lower in cost and more scalable than traditional methods of carbon fibre manufacturing. “At present, the UK is almost entirely dependent upon imported carbon fibre. The UK Government has recognised the need for an indigenous supply and is supporting LeMond to set up a new facility in the UK. Energy Park Way, Grimsby has been identified as the preferred location for LeMond’s first carbon fibre manufacturing site. “The proposed development is expected to create 384 new jobs on-site once the development is complete in 2030. These will include high-skill technical roles as well as entry-level and administration roles. In addition to those direct jobs there will be a number of indirect jobs that will arise in supply chains to the development’s operation.” Carbon fibre is used in a nunber of sectors, including the creation of cycle frames, aircraft and spacecraft, racing car bodies, fishing rods and golf club shafts – but LeMond is focussing its UK efforts on the renewable energy sector. Within the wind industry, the material enables longer, lighter and more slender blade designs, which can reduce the cost of producing energy, and in the hydrogen propulsion sector, carbon fibre is essential to the production of storage tanks as well as in fuel cell stacks and battery housings. The documents highlight how carbon fibre has always been high cost, with limited supply and a poor sustainability profile, but that LeMond is now commercialising new technology developed at Deakin University in Geelong, Australia, which solves those issues. The planning application says: “This technological breakthrough comes as worldwide demand for carbon fibre is expected to increase and to outstrip global supply.” The facility is planned to have a series of “modern, high-quality buildings in a well landscaped setting”, with a “design that encompasses the history/legacy of LeMond, showing yellow features to reference the founder’s Tour De France legacy”.