Member News
Resilience and strategic investment were the focal points for Tharsus Group, the parent company of leading advanced manufacturing business Tharsus and complex metal fabrication specialist Universal Wolf, as it published its annual results for the financial year ending 30 November 2023.
Despite a reduction in revenue, Tharsus Group reported an underlying EBITDA profit of £1.7m. Revenue decreased to £50.9 million, primarily due to an anticipated decline in volume from a key legacy customer, alongside softening demand from a number of other key sectors.
During 2023, the capital goods and technology manufacturing sectors faced challenges from a high level of cost inflation for the second consecutive year. High interest rates and tightened capital markets meant that many of our customers experienced lower sales demand. These challenges affected the Group’s own internal costs and sales demand.
In response to these challenges, the Group has redirected its efforts toward driving profitable growth in target market sectors such including security, electrification & energy, and logistics automation. These are areas well-suited to Tharsus Group’s expertise and with potential for long-term, profitable growth.
As a result of the reduced sales volumes, the Group reduced its direct costs and overheads, simplifying its structure and becoming a leaner operation. This contributed to an increase in gross margin to 21.4% in the year.
The Group also continued to invest in the development of VersaTile technology, a revolutionary new logistics automation product platform. VersaTile is shortly to spin-out as an independent venture, ready to enter the logistics automation product market by providing innovative AI-driven modular automation systems with the ability to transform supply chain efficiencies.
The Group maintained a strong balance sheet, with net assets rising to £16.3 million.
Overall, 2023 marked a year of transformation and adaptation for Tharsus Group. Amidst ongoing external economic market challenges, the Group focused on operational resilience, sustainability, and innovation. As the Group prepares to mark the 60th birthday of the Universal Wolf business in 2024, the Group is positioned for the future of both the Tharsus and Universal Wolf service businesses and for the VersaTile product business spin-out.
Brian Palmer, Founder of Tharsus Group said “I am pleased that the Tharsus and Universal Wolf businesses have been resilient through tough external economic conditions that have impacted our customers and our Group. We have managed our costs effectively and have maintained a strong balance sheet. I am grateful to all our Tharsus Group colleagues for their efforts throughout the year, and to our partners for their collaboration in the continued pursuit of delivering tech that matters.”
