Positive outlook for electronics manufacturer | Wales Business News

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Axiom Manufacturing Services finance director Marcus Smith and managing director Chris Nye (Image credit: Axiom)
Axiom Manufacturing Services finance director Marcus Smith and managing director Chris Nye (Image credit: Axiom)

A South Wales-based electronics manufacturer has hailed the strength of its order book after posting accounts covering a year when pressure linked to cost of living and wider economic instability hit profits.

Axiom is based at Technology Park, Newbridge, Newport, and specialises in contract electronics manufacturing which involves the manufacture and service of electronic and mechanical assemblies, for use in third party electronics. 

According to results for Axiom Manufacturing Services Ltd covering the year to 31 December 2022, pre-tax profit decreased to £2.4m from £4.9m in 2021. Turnover rose to £56.5m compared to £55.9m the year before. 

The impact on the profits achieved during the year were said to be down to the impact of the cost of living and instability within the UK Government having an adverse effect on the US dollar. 

The statement filed with the results also said gross supply chain issues particularly in the semiconductor market continued during 2022, which resulted in customers placing increased and longer orders with the company to secure key materials. 

It added this, along with the legal/severance costs incurred were the major factors.

The company noted that the turnover increase “was in line with expectations and continues the growth trend of previous years”.

Chris Nye, managing director at Axiom Manufacturing Services, told Insider: “Our focus over the past year has been to protect our customers and workforce from the challenges faced by the entire global industry. This has seen us proactively implement a series of strategic investments for the future, and we’re pleased with the results.  

“We’re proud to have invested back into our workforce to help our team face sharp cost of living rises. Over £1.2m of investments in new technology have further futureproofed our ability to deliver the specialist services our customers require. We’ve also safeguarded against rising energy costs through solar capture technology that minimises our carbon footprint.

“The past year has seen us work to shield our customers from the cost rises that have resulted from the unprecedented global supply chain disruptions and a strong dollar.

“Our work with partners continues to guard against ongoing procurement shortages and gives our customers the confidence that we will continue to deliver their products to market on time and on cost. The result of those efforts is a strong 2024 order book that continues to grow.”       

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