Engineering Group Tharsus resets after transition year
Tharsus Group has released its 2024 financial results, providing transparency to stakeholders following a year that tested the resilience of UK manufacturers.
2024 financial performance
The 2024 period brought both headwinds and opportunities for UK manufacturers. Inflation, while easing from its 2023 peaks, remained elevated for much of the year, and businesses across the country faced pressure from rising energy costs, skills shortages, increased employment costs and geopolitical uncertainty. Interest rates remained higher for longer than expected, making funding for customers’ innovation more challenging and expensive.
Total revenue in the year was reduced to £24.5m, and group EBITDA decreased to £0.8m. Despite this, the Group has emerged leaner and more agile after a programme of restructuring that has significantly reduced its cost base. Gross margins improved to 36.2%, driven by a higher proportion of design-led engineering work, and the company ended the year with a strong balance sheet.
Strategic developments
Over the year, Tharsus introduced new engineering and manufacturing customers and simplified its operating structure to boost agility. The Group celebrated its heritage with Universal Wolf marking its 60th anniversary in September 2024.
The Group has also delivered several successful strategic machine development projects, which it believes put it in a strong position to win further long-term contracts in advanced manufacturing and robotics — markets forecast to see sustained growth in the coming years.
The Group continued to invest in the development of VersaTile technology, a revolutionary new logistics automation product portfolio. VersaTile is soon to spin-out as an independent venture, ready to enter the new product market of providing innovative AI-driven modular automation systems set to transform supply chain efficiencies.
Looking forward
Looking ahead, the announcement in the 2024 Autumn Budget of an increase in National Insurance contributions and more recent imposition of various international import tariffs are additional factors causing a subdued economy. The general market appetite for investment via capital expenditure, including innovation, remains cautious as a result.
Following a strategic review, the Group is now concentrating on:
- Building a more diversified portfolio of customers across a range of market sectors
- The spin-out of the VersaTile technology as an independent venture
- Continuing to foster a collaborative culture across the group
Leadership perspective
Director and founder Brian Palmer said that while 2024 had been a testing environment for many of the company’s customers — from advanced manufacturing to logistics and robotics — it had also sharpened demand for automation, resilience and efficiency.
“Our customers have faced weak demand, cost pressures, skills gaps and supply chain uncertainty, that’s precisely where our capability comes in — helping them innovate, work smarter and compete in a rapidly changing global market.”
“This has been a year of change, and I am very grateful to all our Tharsus and Universal Wolf colleagues for their efforts throughout the year. We’ve taken decisive steps this year to make the business more focused. With our 60-year track record, strong balance sheet, talented team and the investments we’ve made, we are optimistic about the opportunities ahead.”
Conclusion
The 2024 financial year undoubtedly presented challenges that have impacted our performance, yet it has also driven important changes that strengthen our foundation for the future. The strategic decisions taken during this period, from operational restructuring to the forthcoming VersaTile spin-out, demonstrate our commitment to evolving with market demands whilst maintaining the capabilities and heritage that have defined our Group for six decades.
We remain transparent with our stakeholders about both the challenges we face and the opportunities we are pursuing. With a leaner operating model, improved margins, and strategic focus on high-growth sectors, we enter the next chapter well-equipped to deliver value for our customers and stakeholders alike.