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Hitachi Construction Machinery (UK) hails record turnover

Date added: 04/08/2015

Turnover is up by almost £30m at Hitachi Construction Machinery (UK), which has a depot in Warrington, to a record amount after a "very exciting" year.

But the company, which supplies construction equipment across the country, expects trading conditions in the current year to be "challenging" due to increased competition despite sitting on a strong order book.

For the year to 31 March 2015, the company reported turnover of £162m compared to £133m for the year before.

Pre-tax profit also increased from £8.18m to £9.82m. HCM's average number of employees for the year was also up to 4,713 compared to 4,061.

HCM supplies mini, medium, large and wheeled excavators, wheeled loaders, crawler carriers, dump trucks, and servicing to the UK and Irish construction industry from ten depots across the UK.

Writing in the strategic report accompanying the accounts, the company said the year had "proved to be very exciting", with the growth in construction output exceeding the government's expectation.

"The increased demand for construction equipment has spread from the South East of the country towards the Midlands and the South West, while the North is showing small signs of recovery," it added.

"The directors are cautiously optimistic that the sales of £162m can be maintained, aided by the introduction of new models from Hitachi with improved fuel consumption and lower emissions."

Despite their cautious optimism, directors also expect trading conditions "to be challenging due to increased competition from other manufactures".

However, HCM added that its order book "remains strong".

"While continuing to face challenges in the market, chief executive John Jones is confident that the company can achieve and beat more challenging forecasts that are being put into place in 2015 and 2016.