|
The financial year to 30th September 2010 saw a return
to significant sales growth of 40%. Profits were restored
but remain below our expectations. Having made the
decision to significantly increase our innovation spend in
new technology and products inevitably it impacted on
our profits. However that was our decision to make and
make it we did. As a private independent company we can
of course take that path when necessary.
The first month of the financial year, October 2009,
brought mayhem upon us. The order book doubled. In
November it trebled and in December it continued the
trend being double again. 2010 continued in the same vein
with each month bringing at least double the average for
the previous year.
These were interesting times born out of panic when
the economy worldwide emerged from recession. This
recovery was global and not restricted to any geographical
or business sector. We are of course in the capital goods
business and we always see the first signs of recovery as
shelved investment plans are dusted off and reinitiated.
Dealing with this situation was testing, we did have spare
capacity but implementing over 100% increase in one
month and then sustaining it was difficult in the short
term. This situation was compounded by the inability of
component suppliers to meet our requirements having
significantly reduced capacity during the recession.
Some were very helpful, others were dismissive and our
procurement policy realignment reflects that situation.
We are now manufacturing 100,000 inverters per annum,
a significant presence in the market, and we expect our
suppliers to engage positively in such situations.
I am pleased to report that we have emerged from this
situation stronger, energised and even more determined
to carry our superb technology forward with vigor and
endeavour. We are assisted by the fact that we are a
young company with a young enterprising team.
2011 sees the introduction to the market of our much
admired high performance range of IP55 products the
Optidrive P2 family. This range of product has cost £4m
to develop, which is a significant investment that will
establish a strong position in a market where we are not
currently prominent. This new product offering will bring
further significant growth to our business.
Responding to such an enormous increase in volume has
resulted in almost complete renewal of our manufacturing
facilities, creating additional future capacity as well.
Current capacity planning will enable the production of
250,000 inverters per annum, which will adequately cover
the needs of the new product ranges currently being
introduced to the market.
The core technology platform of the Optidrive continues
to provide the basis for expanding sales through
multiple brands. An increasing number of global drive
manufactures are using Invertek Drives technology to
compliment their existing product ranges.
From simple customisation to bespoke engineered
solutions, projects undertaken during the year include:
- Application specific control algorithms
- Designs to meet current and future global standards
- Bespoke mechanical designs
- Induction and PM Motor Control
- Low harmonic input current, high power factor
Our Innovation facilities have been repositioned to allow
Invertek to further develop business with other global
drive manufacturers.
The year ending 30th September 2010 has been a year of
sales and profit growth. This has been made possible by
the strength and capability of the Invertek Drives team.
Thanks to this team effort we have been able to continue
the impressive penetration of this very important global
market. Congratulations to all of you and thank you.
|