A South West company which produces high-mobility vehicles for military use has driven turnover past £50m on the back of a major contract with the Australian government.
Turnover at Exeter-based SC Group Global, whose subsidiary Supacat produces the HMT series of vehicles, hit £53.7m for the year to August 31 2017, up from £43.1m in the year prior.
However a number of key suppliers heading into administration led to production over-runs and a loss before tax of £117,956, down from profit before tax of £5.89m the year prior.
Despite what was referred to as a challenging and disappointing year, directors believe the production issues have now been mitigated.
Alan Mitchell, director, wrote: “The group has found the year to be a challenging and disappointing one for a number of reasons.
“The principal reason related to continued production over-runs within the major programme being undertaken by the group for the delivery of 89 new HMT variant vehicles to the Commonwealth of Australia.
“Much of the cost over-runs were incurred as a result of a number of key suppliers going into administration in the early stages of the production programme, the effect of which has not been fully realised until this ﬁnancial year.
“As a result, due to the nature of these events and the associated costs, the directors felt that the costs incurred were of an exceptional nature and as such have attempted to identify these separately within the proﬁt and loss account.
“These developments also resulted in a signiﬁcant reorganisation in staff which has resulted in redundancies. These costs again have been included in the exceptional items.
“Whilst this has been extremely disappointing, the directors are now conﬁdent that the production issues have now been mitigated and delivery and completion of the overall programme is now forecast for the second quarter of the 2017/18 ﬁnancial year.”