A drop in demand for products has led to a fall in revenues and profits at major Northumberland employer Dräger Safety.
Draeger Safety UK Ltd, which trades as Dräger Safety, has manufactured safety and medical technology solutions from its base in Blyth for more than 60 years. It has now published accounts for 2023, showing turnover dropped 12% to £115.25m, following a weakening in demand. Operating profit also fell by 3.7% to £10.6m though total shareholder funds increased from £67.5m to £75.1m.
Despite seeing the fall in its financials, directors used the accounts to highlight how cost controls and the firm’s diverse portfolio are aiding the business and keeping it profitable.
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The directors said: “Demand for certain products, in particular personal protective equipment (PPE), was significantly decreased due to the completion of a one off pandemic PPE contract in the prior year, and at the same time there were substantial reductions of inventories of the company’s finished products held at fellow subsidiaries globally. Profitability was nevertheless maintained as a result of ongoing careful management of costs.
“The company continues to maintain the Draeger brand’s well-established 125-year history and reputation for quality and technical excellence while developing innovative solutions focused on customer needs. The company continued to benefit from its diverse product portfolio and customer base.”
The firm said its Compressed Air and Breathing Equipment (CABE) products continue to perform strongly, especially in the fire and rescue service market globally, but pointed to Governmental spending reductions in recent years, which have been shown to impact its major markets.
It also said that the oil and gas sector has seen continued low activity as a result of Covid restrictions offshore, but that higher oil prices has led to increased investment, and that early investment in decommissioning and clean energy production is also starting to influence the market.
Draeger directors added that staff training and investment remain “integral to the continuing success of the business, to meet customer needs and remain competitive. The Draeger Group has restated a strategic objective to maintain the current high level of investment in research and development.”
Earlier this year Draeger announced plans to build a new North East facility as part of multimillion-pound expansion plans. The group is in talks to acquire land for a new base close to its existing Blyth Riverside Business Park plant with a number of locations under consideration. The firm said it wants to make sure the company can retain the skills and experience of its existing staff, many of whom have worked with Draeger for many years.
Following publication of the accounts, Matthew Bedford, managing director at Draeger Safety UK Limited, said: “The results are entirely as expected, and reflect the temporary increase in production of PPE products during the pandemic. We are delighted that strong profitability has been maintained, and look forward to enabling the expansion of our UK operations with our plans to acquire a new site in North East England, in line with our anticipated growth projections over the coming years.”
