AES puts emphasis on 30-year target

AES Engineering's founder and managing director, Chris Rea.
AES Engineering's founder and managing director, Chris Rea.
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Rotherham’s most profitable company is targeting 30 years of uninterrupted sales and profit growth after boosting sales by almost a fifth and profits by even more.

Mechanical seal manufacturer AES Engineering, which trades as AESSEAL, says sales rose by 19.5 per cent to £132.9 million in 2011 and earnings before interest, taxes, depreciation and amortisation was up by 22.9 per cent at £22.8 million.

Founder and managing director Chris Rea said: “Whilst the UK economy hovered on the edge of recession for much of 2011, we have managed to further strengthen our global sales.

“We have made significant product technology and customer service infrastructure investments over the last decade, and I believe we are seeing the benefits.”

Ken Beaty, partner at 3i, a minority investor in AES since 1996, added: “It is encouraging to see an example of a UK manufacturing business bucking the trend to succeed internationally in today’s challenged economy. This is a result of an outstanding management team, a leading market position and continued focus on quality and service which is reflected in AES’s consistent 20 per cent CAGR (compound annual growth rate).”

During the last year, AESSEAL invested in increasing employment and stock levels. The company also invested in product development and made three acquisitions.

Employment levels rose by five per cent to 1,331 world wide, while the company increased the value of products held in stock by £4 million to provide faster delivery to more customers.

The company expanded its range of American Petroleum Institute-approved seals and systems for applications involving hydrocarbons and also invested in the development of dry gas seal technology for compressors, enabling it to compete with more dominant suppliers in that sector.

The group acquired Absolute Vacuum in the UK and made two key acquisitions in the US.

Over the past 29 years, AESSEAL has grown into the world’s fourth largest manufacturer of its kind and won more Queen’s Awards than any other Yorkshire company.