The Newcastle engineer expects to see growth after coming through a period of transition.
Directors at Newcastle engineering firm Houghton International expect to see significant growth in the years ahead, as it plans for more investment in kit and staff.
The electro mechanical engineering firm, founded in 1984, has grown from serving just one customer to having scores of clients around the world in the power generation, oil and gas, rail and industrial and manufacturing sectors.
Now the firm – which provides repair, maintenance and life extension services regionally, nationally and internationally – has published accounts for the year ended January 31, showing how it added £1m to its turnover in the year, seeing it grow from £9.3m to £10.3m. Operating profit, meanwhile, almost doubled from £444,618 to £829,300, while pre-tax profit jumped from £424,880 to £818,533. The overall profit for the year was £717,311, up from £321,877.
The company’s workforce also rose from 120 to 124 employees. Accounts for Houghton International Electrical Services Limited point to a period of transition following Covid and much change within the rail industry, while looking to the future and plans to grow its market share and geographic footprint.
In the accounts, CEO Michael Mitten said: “The year ended 31 January 2023 has seen the company emerge from a period of transition against a backdrop of Brexit, Covid 19 and structural changes within the rail industry.
“Revenue increased by over 10%, profitability was improved and activity was maintained across all operating units and industry sectors. We continue to invest heavily in employee training, apprenticeships and research & development, and expect to secure further growth in the coming year, particularly within the renewable energy and water sectors. The company provides its services through a sector focused approach to the diverse range of markets in which it operates.
“The company’s ongoing growth is dependent on continuing to grow our market share in the sectors we currently operate in, while adding to both the range of services we offer and the sectors in which we offer them. The directors also have absolute confidence in their strategy, which has served the business well for many years by focussing on sectors that remain relatively unaffected by wider economic cycles.
“The company aims to grow significantly in 2023 and beyond while improving profitability, and the board expects to continue to increase production capacities with capital expenditure and a growth in headcount over the coming year. Expected growth will be supported by a mixture of geographic expansion and a broadening of the scope of services provided to new and existing industry sectors.”
In the accounts Mr Mitten also shared the company’s focus on developing a sustainability manifesto, which will include measurement of its current carbon footprint and the steps it intends to take to reduce its environmental impact.
He added: “Prior to the acquisition of any asset or the commencement of any new process, appropriate consideration is given to the environmental impact and ensure the efficient use of energy and other resources and the safe and responsible disposal of any residual waste. The company is also well poised to support a new customer base as industries continue down the road of electrification.
“This includes the ability to provide after-market support and repairs to the clean energy industry, particularly in wind, as well as providing consultancy services and R&D support to new entrants in the cleantech market.”
