Rimstock sees huge surge in profits

A huge surge in profits has capped a huge year for the Black Country allow wheel maker as it nears completion of its new 100,000 sq ft factory.

Located at Black Lake in West Bromwich, the new factory is just yards away from Rimstock's headquarters on Church Lane and 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.

The firm has a customer base that includes Aston Martin, Jaguar Land Rover, Toyota, Ford and Mercedes-Benz as well as over 40 global motorsport series under its Team Dynamics brand.

Its latest accounts show a dramatic increase in performance in the year following a takeover by global investment firms Safanad and Current Capital together with British entrepreneur, David Roberts, who became the executive chairman.

Pre-tax profits 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%.

The company said in its report: "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 direct costs."

Administrative costs rose by almost £347,000 due to additional rent and salary costs. The firm also incurred significant one-off professional fees as part of business improvement projects.

It has also continued with its growth plan, which it started in 2015 when it received an RGF grant to assist in the development of its production facilities.

The new facilities are set to become operational by the end of March this year and it is hoped they will also see an increase in Rimstock's workforce, which is currently 224-strong.

The report said: "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."

In its push to become a global manufacturer, Rimstock has also been investing 'substantially' in research and development and has begun manufacturing several new products.

"The shareholders and directors continually look for opportunities to grow the product range, increase the range of services and capabilities on offer to customers and expand into new markets," said the report.