Plastics manufacturer Nifco UK Ltd expects to grow turnover by more than 40% to £68m within two years after marking a record year for new business.
The firm, which has been making parts for the motors industry for more than 30 years, last year moved three miles down the roads from its original base into a new 14.4 acre, £19m site in Durham Lane, Eaglescliffe, a facility already bursting at the seams 18 months on.
Having outgrown the facility, the firm is now building a second 6,000 sq m factory on the site to accommodate more manufacturing space.
Annual accounts show the business, which is run by managing director Mike Matthews and employs more 300 staff, now plans to start up a research and development facility in the new building, a move the company views as an important step for future growth and revenues.
The accounts, filed this week in Companies House, show turnover rose to £40.9m in 2012 from £32.4m the previous year, and revenues are forecast to top £48m this year following a consistent increase in demands from new clients, a figure it believes will rise by a further £20m in 2015.
“Our opportunities seem to be growing in number with a record year for new business being achieved. Nearly 43% of all inquiries were converted into purchase orders in 2012,” the directors’ report said.
Operating profits were knocked, however, from £3.7m in 2011 to £1.4m last year, mainly as a result of relocation costs.
The company, which won the manufacturing prize at the North East Business Awards in April, said 2012 was a challenging and demanding year, with the move – which was carried out at a cost of £1.7m – coming as new work was taking place, bringing in a 26% boost in sales.
This year remains just as challenging as the firm, one of 37 sites operating in 16 countries owned by Japan-based Nifco Inc, works hard to meet orders and with the need to perpetually reduce costs it said it is in the process of forging closer links with Nifco Poland and other Nifco companies to allow them to offer attractive, Low Cost Country prices on certain products to customers.
Despite seeing profits fall it said the foundations were now in place to take the business forward and grow at a steady pace.
The report accompanying the accounts said: “The company now has a very solid foundation in its new plant and significant new business moving forward.
“Our ongoing training and development of staff, business systems and operational effectiveness and quality performance puts us in a good position moving forward with year-on-year increased sales per person.”