Invertek Drives, the Welsh manufacturer of variable speed drives used to control motors for industrial and energy saving applications has reported its profits are up significantly in its 2022/23 financials, filed recently.
According to accounts filed with Companies House Invertek Drives saw pre-tax profit rise from £9.4m in 2021/22 to almost double at £15.7m in the financial year ending 31 December 2023. The business also saw turnover also surge from £76.3m to £96.9m, marking an impressive and significant on the previous year.
Welshpool-based Invertek which has been trading for over 25 years has said that the rise in pre-tax profit was achieved as a result of “very strong sales growth” of 27 per cent and of further improvements to its production efficiency and capacity.
During the 2023 the business also started construction work on a 29,600 sq ft extension to its manufacturing and warehouse facilities which will increase output capacity by a further 60-70 per cent. This will assist the business growth further and it is expected to be complete in Q2 2024.
In their report accompanying the results, the directors added: “The strategy of the group is to maintain recent growth and margin levels. Overall 2023 has been a fantastic period and the group’s projects suggest that 2024 will be a year of consolidation with results broadly in line with 2023, before sharp growth resumes in 2025, aided by the substantial ongoing £10m investment in the UK manufacturing and distribution centre.”
Invertek’s Optidrive VFDs are used globally to accurately control electric motors in applications ranging from material handling, pumping, ventilation, refrigeration, and HVAC systems. The VFDs ensure accurate speed control resulting in improved processes, reduced energy consumption, and a reduction in associated emissions as a result.
It exports about 90 per cent of its output to Europe, US, Australia and the Middle East. The US and America markets have emerged as the company’s largest sales area, reflecting its growing international reach.
Shaun Dean, Chairman of Invertek Drives Ltd and Senior Vice President of Sumitomo Heavy Industries, said: “Since Sumitomo Heavy Industries acquired Invertek Drives in 2019, we have witnessed tremendous growth across all markets. The US market’s emergence as our largest customer base is a testament to our successful expansion strategy and commitment to providing unparalleled value to our customers.”
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