Profits and turnover surge as Rimstock prepares for growth
Soaring turnover and profits have capped a major year for Black Country allow wheel maker Rimstock as it nears completion on a 100,000 sq ft new factory in West Bromwich,
The new factory at Black Lake, just yards from Rimstock's headquarters in Church Lane, is part of a multi-million pound investment programme to build on the company's position as the UK's leading manufacturer of premium alloy and aluminium wheels.
Its customers include Aston Martin, Jaguar Land Rover, Toyota, Ford and Mercedes-Benz, while under its Team Dynamics brand it supplies over 40 global motorsport series.
It's latest accounts, filed at Companies House, reveal a dramatic surge in its performance in the year after its takeover by a new group of investors.
Pre-tax profit at Rimstock Ltd in the 12 months to the end of March jumped to £540,560 from just £23,825 the previous year. At the same time sales surged to £16.2 million, a rise of more than 17 per cent.
In the strategic report attached to the accounts, the company said: "Trading activity with several key customers increased with the commencement of a number of new car programmes."
"The business managed to not only grow turnover but also improve profit margins through careful management of directo costs." Administrative costs rose by almost £347,000 due to additional rent and rates as the factory expanded, while salary costs rose as Rimstock strengthened its management team.
It also incurred 'significant' one-off professional fees as part of business improvement projects.
It continued with its growth plan, started in 2015 when it received an RGF grant to assist in the development of its production facilities. These are due to become fully operational by the end of March this year.
"When completed these facilities will significantly improve the company's competitive advantage and reduce the current supply and foreign exchange risks experienced by the business." It is hoped they will also see an increase in Rimstock's workforce, which is currently 224-strong.
Rimstock aims to become a significant supplier to global premium automotive manufacturers as they expand their ranges of cars. It has been investing 'substantially' in research and development, starting manufacturing of several new products.
"The shareholders and directors continually look for opportunities to grow the product range, increase the rangeof services and capabilities on offer to customers and expand into new markets," said the report.
In June 2016 Rimstock was acquired by global investment firms Safanad and Current Capital together with British entrepreneur, David Roberts who became the executive chairman. Last summer it also secured £12 million of funding from Clydesdale and Yorkshire Banking Group (CYBG) to support its growth.
