08.01.2015

Strong year for King

UK based King Vehicle Engineering group, which includes GSR and Palfinger Platforms distributor Skyking and King Trailers, has announced its annual results.

For the fiscal year 2013/2014 the company achieve revenues of £19.44 million, over 15 percent up on the previous year, while pre-tax profits jumped 35 percent to £1.53 million.

The company says that both sales growth and increased profitability were spread across its activities and are a result of improvements in the UK economy, which encouraged customers to re-invest in capital equipment. It also says that the higher profit levels are due to its policy of diversification over the past six year, with more emphasis placed on sales of niche market equipment, along with equipment rental.

Its traditional business of heavy duty trailers and sales of aerial work platforms are now growing solidly, while its newly established Palfinger hookloader distributorship, Kingrail - the rail equipment conversion business and project engineering division - King Transport Equipment are all expanding. In addition, its vehicle rental business Safety Vehicle Hire and Lease has made a healthy contribution to profits.

Chief executive, Mark Carrington said: “Over a two year period sales growth has been a massive 60 percent. We have maintained our profitability throughout the recent recession and are in a good position to capitalise on the recovery in the UK economy. We made a decision in 2007 when the building sector collapsed to focus 100 percent on UK business and be suppliers of top quality engineered products which we support in service. That involved us protecting our engineering team through diversification. That policy has paid off handsomely and has been welcomed by our customers.”

“The main limitation to further growth is the UK skills shortage, particularly in the engineering sector. Good quality design engineers are the stock in trade of our business and the government needs to recognise that the ongoing recovery in the UK is reliant on restoring a lost generation of skilled labour across many disciplines from doctors to drivers.”

Vertikal Comment

This is certainly a solid result from King which reacted in a positive way to the crash that began in 2008, just after Carrington bought out other shareholders to own the business outright. It has certainly emerged in far better shape, with ample scope for further growth both from aerial lifts sales and its new divisions. 2014/15 should be better again.
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Mark Carrington in 2015