Astec (BRS) Plc, the Hong Kong-based manufacturer of power conversion equipment whose shares are still quoted in London despite the change of domicile a few years back, saw its fortunes soar for the year ending December 31. The company, which recently invested $4m in an 80,000 square foot manufacturing facility in China, saw turnover climb 16.1% to 291.4m, while pre-tax profit went through the roof, up 91% at UKP14.9m. The company spends 5.3% of its turnover on research and development, which it says is about right for power conversion products. It has just started marketing its High Density modular DC-DC AMPSS product line, which is being made at its facility in Hong Kong. The company has been moving its manufacturing out to Mexico and the Far East because manufacturing costs are lower out there. It increased its head-count in the Far East by 100 to 8,000 in the year, while Mexico was static in the year. One of the benefits of being in the Far East and Mexico is that it is close to the firm’s major market, which is the US. Some 50% of its revenue comes from America, the rest roughly balanced between the Far East and Europe. Apart from increased sales, the massive profit rise has been helped by a general tightening of belts all round. The company says that it hasn’t had to reduce head-count overall. A benefit from the soaring profit is that it has eliminated its former 12.7% gearing ratio to become cash-positive and that its shareholders have been given a 0.75 pence per share dividend – none was paid last time.
