Yorkshire-based engineering firm Wescol unveiled a new European focus last week with news that German steel giant Salzgitter is to take a 26% stake in the business.
The development follows a joint-venture with Salzgitter that will see the German company produce Wescol’s cellular beams on the continent.
Salzgitter, the second largest steel producer in Germany with an annual turnover of more than £2bn, is also to replace British Steel as Wescol’s main supplier. The deal came as Wescol unveiled an 11% rise in operating profit to £4.9m in the year to the end of July.
Chairman Peter Price welcomed the results, which had been achieved despite a fall in orders last year. The year-end marked the end of Wescol’s two-year capital expenditure programme.
Pre-tax profits rose to £4.63m from £4.5m. The final dividend was 1.2p a share, making a total for the year of 2p, up from 1.9p a year ago.
Company Pre-tax Turnover Dividend profit £m £m p This Last This Last This Last
Brunel Holdings -11.1 6.92 72.1 99.7 nil 0.5Year to 30/6/99
Flare Group -3.83 -2.09 15.1 16.5 nil nilInterim 30/6/99
Wescol Group 4.63 4.56 72.1 74.1 1.2 1.1Year to 31/7/99
Yorkshire Group 0.96 3.09 30.6 32.8 3.05 3.05Interim 30/6/99}}