Muir of Ord company SGL Carbon Fibres hit by volatile energy prices and Covid restrictions, accounts posted by firm reveal
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A Muir of Ord company cut its losses substantially last year but was still in the red.
SGL Carbon Fibres - which is the only UK producer of carbon fibres and oxidised fibres, some of which can be used to make wind turbine blades - recorded a pre-tax loss of £562,000 for 2021.
This moved from a pre-tax loss of £5,329,000 in 2020.
For the same period, turnover increased from £58,550,000 to £63,882,000.
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A strategic report accompanying the firm’s latest accounts stated: “The Covid pandemic continued to have an impact on resource due to isolation guidance which resulted in a reduction in overall potential operations at the sites [it has a manufacturing site near Halifax in West Yorkshire].
“While there has been supply chain challenges, also due to Covid, we have largely managed this risk and there was no business interruptions due to lack of material availability.
“Energy increases through the second half of 2021 impacted the Muir of Ord site. Forward purchasing of energy helped to offset the financial impact to the business.”
A directors’ report added: “As volatility in the energy market sector has seen record high spot pricing, we are in the process of reviewing our energy purchasing strategy to mitigate financial risks going forward.”
The average number of employees increased from 261 in 2020 to 263 in 2021, while staff costs rose from £10,117,000 to £10,431,000.
The ultimate parent company is SGL Carbon SE in Germany.
