Massive growth in the aerospace industry helped to transform distribution and engineering group Umeco last year.
The company announced a 93% surge in profits to £4.86m. It put the increase down to growth from long-term outsourcing contracts with major customers.
Chief executive Clive Snowdon announced an 11-year outsourcing contract with aero-engines group Rolls-Royce, describing it as a ‘substantial breakthrough’.
‘We are confident that others will follow,’ he added.
The deal involves Umeco’s Pattonair division, which distributes aerospace components including seals, fasteners and clamps. The business will set up a new division, Pattonair Logistics, to handle the project.
Pattonair will receive a management fee based on the annual value of components supplied.
Snowdon said the contract would involve a ‘considerable’ investment in people, facilities and working capital over the next 18 months.
Growing demand for outsourcing of supplies saw Pattonair make a substantial contribution to the group last year. It recorded a 50% increase in sales and profits last year, thanks to several outsourcing contract wins in the previous year.
Another contract win last year led resins business B&K to set up a separate division for British Airways. The company will supply BA with a range of adhesives, resins and other sealant products for use in the regular maintenance of aircraft.
Other aerospace customers include BMW/Rolls-Royce in Germany, BAe and GKN-Westland Helicopters.