Jaguar models give Stadco a sales boost

Accounts published by Stadco Ltd show that the company grew turnover by seven per cent to £218.1 million in 2015.

However, operating profit dipped by 26 per cent to £9.9 million for the body-in-white pressings company, which has operations in Telford, Shrewsbury, Mid Wales and Castle Bromwich.

The improvement in sales was largely on the back of new lines launched by Jaguar, with the XE and XF both drawing on the company's pressings expertise.

The XE was the first model to use Ingenium engines from the new plant at I54 near Telford, with figures so far showing the new model has enjoyed a strong early performance.

As a result, Jaguar's production has increased dramatically in the last 12 months, and Stadco makes body panels for the company, which is riding the crest of a tremendous sales wave.

It also said it was set to benefit from the launch of other new Jaguar models such as the F-Pace.

At the same time as it benefited from the work with the high-end marque, Stadco invested in new machinery to support these contracts, spending £16 million in facilities and equipment.

The £3.4 million fall in operating profits reflected the launch cost of new vehicle programmes.

The figures left the company in a healthy position as its parent – Stadco Automotive Ltd – passed into new ownership.

The business was taken over by Canadian giant Magna International – a manufacturing giant which achieves turnover of £23 billion a year – towards the end of the accounting period in October.

"Sales continued to grow during 2015 with turnover increasing to £218.1 million, an increase of seven per cent, largely as a result of new business on the Jaguar XE and XF replacement vehicle going into production during the year," Stadco said in a statement accompanying its accounts.

It added: "The outlook for 2016 remains positive with the launch of the Jaguar F-Pace at the end of 2015 expected to contribute to further growth during 2016."

"Although the European automotive sector continues to face economic challenges, a significant proportion of production relates to Jaguar Land Rover, whose models continue to sell well both in the UK and global markets.

"Being part of Magna is expected to bring new opportunities, which in turn is expected to result in increased growth for the company."

Stadco's pre-tax profits, excluding exception items, fell from £13.1 million to 9.7 million.

When broken down by geography, the UK continued to represent the vast majority of turnover, accounting for £215 million of sales, with Poland second with £2.5 million.

The company employs more than 1,000 people, with its main operations being at Queensway in Telford and Battlefield in Shrewsbury. It also has a plant at Llanfyllin.

Magna reported first quarter results last week, with sales clocking in at US $8.9 billion (£6.15 billion).