Company Snapshot: Schrader Electronics Ltd.
Getting back on track after blip
Schrader Electronics has expanded quickly and profitably in recent years with an unwelcome blip in 2009 from which it has now recovered.
The business is based in Carrickfergus and until September 2010 it was a wholly owned subsidiary of Tomkins plc, registered in England.
The businesses were then purchased by a consortium and the ultimate parent company is now Dutch registered Pinafore Cooperatief U.A.
The company develops and manufactures remote tyre pressure monitoring systems for vehicles and other related electronic sensing technologies. During 2008 and 2009 it was affected by the downturn in the production of vehicles in North America.
Last year sales volumes were higher following an improvement in the global vehicle markets.
Schrader's annual report showed that in 2010, research and development spending rose to £7.2m compared to £5.5m a year earlier.
Business forecasts for 2011 are that the vehicle market will grow by a further 4% over the 2010 levels.
The headline figure for 2010 was the sharp increase in recorded turnover.
In the last five years, production value has nearly tripled. Consistent with the increase in turnover, operating and pre-tax profits have also increased.
Pre-tax profits in 2010 were higher than any recent year and were equivalent to 42% of the balance sheet value of shareholder funds.
European Union legislation means that by 2012 a system of remote tyre pressure monitoring will be required on all new vehicles.
This means a major increase in the market opportunities for Schrader.
- Translink: An apology: The columns in last week's table reviewing the results for Translink were inaccurately labelled. They related to 2009, 2010 and 2011 respectively.