Steel and engineering group Sheffield Forgemasters has more than doubled its operating profits, despite seeing sales decline slightly.
The Brightside Lane group increased profits from £2.3 million for the 12 months to the end of June 2011 to £5.4 million this year, while turnover fell from £107.5 million to £106.8 million
Chairman Tony Pedder said: “It is very pleasing to report that despite continuing difficult conditions affecting most of our markets, operating profit for the year increased with our turnover remaining virtually unchanged from last year.
“In the context of the global economy and our industry, this is a very positive result. Our strongest markets continue to be the offshore oil and gas, but power generation and defence sectors are also strong.
“Demand in most of our other markets remained subdued and consequently, margins have remained tight.”
Mr Pedder said Forgemasters had responded to challenging conditions by focusing its attention on costs and efficiencies, while also continuing to invest in research and development and skills.
“We believe it is vital to keep pushing the boundaries of our technology and expertise in order to keep enhancing our reputation as a leader in our field,” said Mr Pedder.
“As ever, the skills of our workforce remain one of the company’s major assets.
“We will continue to invest in enhancing that skill base and this is vital in ensuring that we constantly meet the challenges of what is still, and looks likely to remain for some time, a difficult trading environment for the group and its competitors.”
Forgemasters says that although times remain tough, it is already seeing improvements on the past year and is highly optimistic about prospects for future contract successes.