Vulcan Industries (VULC has described its performance for the year ending 31 March 2021 as an improvement over the previous 17-month period despite the effects of the pandemic.
The Company’s objective is to acquire and consolidate engineering, manufacturing and industrial SMEs and to manufacture and fabricate their products for a global client base.
The Company has previously outlined to investors that its acquisition strategy is based on ‘establishing targets that represent opportunities for synergies, helping to streamline existing operations and contributing to centralised purchasing, supply chain and operational savings.’
Vulcan was admitted to trading on London’s AQSE Growth market back in June 2020. Upon its admission, the Group raised £0.746m gross to fund its growth and acquisition strategy.
From October 2018 to March 2020, the Company had made a total of four acquisitions.
The Company’s focus during the year to 31 March 2021 has been to restructure the existing businesses to recover from the financial impact of the pandemic. The Company explained to investors that COVID-19 has had ‘a significant impact’ on the financial results for the year.
M&G Olympic Products (“M&G”), a specialist designer for swimming pool equipment and other things, operated, albeit at reduced levels, during 1H21 with the remaining operations locked down from the end of March 2020 and resuming activity towards the end of June 2020.
The Company noted that by the end of the second quarter, activity levels were ahead of internal forecasts made at the time of admission to AQSE. It said this progress continued into the 3Q with further improvement in the final quarter despite further lock down measures.
In FY21, Vulcan reported revenue of £5.2m vs £5.67m in the 17 months to 2020 and loss before interest, tax depreciation and amortization of £2.18m compared to £2.01m in 2020.
At 31 March 2021, the Group balance sheet showed net liabilities of £2,559,000 (FY20: £1.3m). Since the year end, Vulcan has raised new equity of £1,091,000 before expenses.
After taking the impact of COVID-19 into account, the Group said its overall performance in the year ending 31 March 2021 was “an improvement” over the previous 17-month period.
While trading in the first half of the year has remained difficult, the company said its order books across the Group have “picked” up since the end of the last lock down.
Vulcan said it remains focused on strengthening its balance sheet and raising new equity to enable it to take advantage of the improved demand outlook for the remainder of the year.
Follow News & Updates from Vulcan Industries: