Tyre pressure firm sees growth
Schrader Electronics has continued to profitably expand in recent years after a fall in turnover in 2009, from which it has recovered. Turnover has increased by over 70% in the last three years.
The local manufacturing facility is based in Carrickfergus. Until September 2010, it was a wholly owned subsidiary of Tomkins plc, registered in England. In September 2010 the Tomkins businesses were purchased by a consortium and the ultimate parent company became the Dutch registered Pinafore Cooperatief UA.
In April 2012 this group was acquired by Schrader International Inc, a company registered in the Cayman Islands.
The principal activity of the company is the development and manufacture of remote tyre pressure monitoring systems for vehicles and other related electronic sensing technologies.
The company annual report identifies significant levels of expenditure on further research and development to broaden its marketable products. In 2010, research and development spending rose to £7.2m and then to £9.5m and £12.2m in the following years. Business forecasts for 2013 are that production volumes will grow by a further 3% over the 2012 levels, with stronger growth in North America and Asia.
Consistent with the increase in turnover, operating and pre-tax profits have also increased. Pre-tax profits in 2012 were higher than in any recent year and were equivalent to 46% of the balance sheet value of shareholder funds.
The implementation of European Union legislation, requiring that a system of remote tyre pressure monitoring is fitted to all new vehicles, means a major increase in the market opportunities for Schrader.
The average number of employees in 2012, at 964, was 3% higher than a year earlier. This was nearly double the numbers of six years earlier. Post-tax profits are usually retained within the business. However, in 2012, unusually, the company paid a dividend to its shareholders of £7.3m. Nevertheless, the balance sheet value of shareholders' funds, influenced by further retained profits, continued to increase to reach £35.7m.