12 June 2024

In the year to September 2023; turnover is up 4% while gross margins improve to 8.3% as management and efficiency measures are applied; all resulting in pre-tax profits up almost 80% to £4,757m 

Quartzelec has posted another positive set of annual figures that were achieved by continuing to focus on providing high standards of customer service, being the international partner of choice for engineering services, and by providing vital services and support across many key industry sectors. These include power generation & renewables, rail, utilities, construction, manufacturing, oil & gas, as well as key customers that include the MOD and NHS.

In the financial year ending 30 September 2023 turnover improved 4% to £73.9m while pre-tax profits were up 79% to £4.8m mainly due to improved management, improved productivity and closer control of costs.

“We deliver excellence throughout the power chain in the fields of rotating machines, contracting services and innovative products,” stated Stephen Morrison, Quartzelec’s Managing Director. “Our order book remains exceptionally strong but dipped slightly during this period to £76.8m following the initial COVID bounce back that was seen the previous year and driven by several of the key sectors. While higher energy costs, inflation, and interest rates, particularly in the UK have played a part, our operational resilience, the geodiversity of our customer base, and our highly skilled and flexible workforce, have all positively contributed to our success.”

Financial Key Performance Indicators to 30 September 2023

Quartzelec has built and maintains a highly skilled and experienced workforce that expanded by 4% in the year. The annual average staffing level stands at over 560, with all collectively contributing to the Group’s long-term UK and international success. It also continues to recruit for the future with over 40 new apprentices starting during the financial year, supplemented with ongoing training courses delivered through ‘Quartz Academy’ to maintain and enhance the existing employee skill base.

The safety and wellbeing of both customers and employees has been an ongoing primary concentration and Quartzelec’s ‘open door’ culture and ongoing focus on the company’s introduction of the ‘Safe to Say’ initiative remains a paramount focus. Continuous investment in the business infrastructure has been key and the Group is actively endeavouring to reduce its carbon footprint and improve its environmental credentials wherever possible. A raft of initiatives has been put in place, resulting in a growing number of its locations being accredited to ISO 14001:2015.

The company also supports a variety of charitable activities. These include: the Smallpiece Trust, which provides young people with an opportunity to gain access to high level, inclusive and engaging STEM activities to fuel their passion for engineering; support for the Trussell Trust which runs a network of foodbanks across the UK, increasingly important given the current economic climate; and employees are also encouraged to take some paid leave to support their volunteering within local communities.

Stephen Morrison concluded: “We have over the past couple of years built and structured the business for managed growth and whilst aspects of the coming year still look challenging, we are optimistic about our continued organic growth which is key to development in all our focused markets and for our geographic offerings. By operating a decentralised business model, decision making can be made at a local business unit level, and this in turn is backed-up and supported by strong central functions. This enables us to continue to build strong, long-term, customer and supply chain relationships and deliver value to their businesses. It is pleasing to note that the company balance sheet remains strong with net assets of £16.3million providing the underlying financial strength of our organisation.”

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