Business is on the up for major Bridgnorth employer
A major Bridgnorth employer is set to report strong financial results as bosses say 'extraordinary commitment' has led to a turnaround and major boost in sales.
Evolution Castings Group Limited, incorporating the Grainger & Worrall group of companies, issued a trading update for the year ending October 31.
Grainger & Worrall, a world-leading manufacturer of sand castings to well-known supercar, hyper car and EV manufacturers, was subject to a management buyout in June, following a period of challenges.
Unaudited results for the financial year show group sales have increased by 38 per cent to around £76 million compared to the 12 months to October 31, 2022.
The group says it effected a very intensive turnaround during 2023 and through a combination of margin improvement initiatives, a fundamental change in the operational set up of the business and continued controlling of costs, it has announced EBITDA, stated on an IFRS 16 basis, is expected to be £5.5 million (pre exceptional costs). One off exceptional costs of £4.3 million were incurred in relation to the restructuring and the management buyout transaction.
The group also ended the period with net bank debt after considering cash and cash equivalents of £11m, an improvement of £6m.
Suppliers have also been brought back into terms and a financial KPI that the business will monitor as part of its ESG strategy will be their adherence to the Government’s prompt payment code.
Highlights during 2023 included the formation of partner community groups within the business including Evolution World and Evolution Women, greater inclusiveness within the business with regular engagement across the business through weekly newsletters, and monthly management and employee forums, stronger relationships with external stakeholders including customers, suppliers and the local community.
The company also launched a new partner share scheme that is available to all the Group’s employees enabling all eligible employees to own a share of the business.
Iain Johnson, Chief Financial Officer said: “The financial results speak for themselves and it just goes to show what can be done when a business engages with its problems and proactively goes after the markets in which it operates. An extraordinary amount of effort and commitment has been put in by the partners in the business every day to achieve extraordinary results.
"I am delighted that we were able to give all our eligible partners a share of the group so that as owners they really do feel part of the business.”
Andrew Burn, executive chairman, said: "I am extremely proud of the 760 partners in the business and what has been accomplished by the group over the last 12 months.
"Walking around the facilities now, it is like a completely different business. That could not have been achieved without the support of many external stakeholders and every single partner in our business pulling in the same direction to change the culture and strive for perfection.
"Whilst we will continue to maintain a strong grip on the fundamentals of the business such as cash and costs, we are coming out of the turnaround. Our focus is now solely on growth, exceeding customer expectations and producing the highest quality castings in the world.
"We are also actively engaged in looking at acquisitions overseas as we look to expand our physical manufacturing presence worldwide.
"However, above all, we want to be a great corporate citizen that everyone involved in the business can be proud of. We want to positively influence the local, national and global communities that we are part of as it is simply the right thing to do.
"As such, I am absolutely delighted to announce that Evolution Castings Group has agreed to sponsor the local Bridgnorth Walk in 2024. Working with the Lions the business will be even more involved than it has been in previous years.”