Member News
Tharsus Group, the parent company of advanced machines and robotics firm Tharsus and complex metal fabrication leaders Universal Wolf, today published details of its annual results for the latest financial year to 30 November 2022.
Tharsus Group achieved an underlying EBITDA profit of £2.9m in the year to 30 November 2022 despite reduction in revenue to £77.3m, and the Group continued to invest its own logistics automation products.
Group revenue decreased by 14.5% to £77.3m in the year to 30 November 2022 due to tough market conditions and expected reductions in legacy customer volumes. This was after a period of strong growth during the Covid lockdown periods when the transition to automated systems was accelerated.
Following the Covid lockdowns in 2020 and 2021, the technology manufacturing sector has experienced a challenging business landscape. While consumer behaviour adjusted to hybrid lifestyles, costs have experienced a high level of inflation, supply chains were elongated, and capital markets have tightened up. Many technology companies have reported sales demand softening and funding becoming harder and more expensive to secure, especially for earlier stage businesses. This market environment has affected our customers’ demands, and this has adversely affected our own sales volumes in the period.
Despite the external market headwinds, the Group has continued to provide innovative development and manufacturing services to its customers. During the year the Group manufactured its 10,000th robot for Ocado after a nine-year partnership. Tharsus Group’s purpose remains, to “deliver tech that matters” and in line with this, the Group updated its 5-year strategy. Tharsus continues to focus on the logistics automation sector, but also has strong partnerships with customers in new strategic market sectors including, electrification, health tech, and food.
Introduction of its own automation technology is part of that updated strategy and during the year Tharsus invested over £2.8m in the development of its own logistics automation products for which they own the intellectual property, following the filing of several patents in the year. The Group is excited to be working with key customers to trial the solutions before taking the products to market.
Universal Wolf experienced difficult market conditions triggered by the Russian invasion of Ukraine, with supply chain challenges and exceptionally high cost increases for metal materials, energy and labour. There was a lagging effect during the year before these costs could be passed on to customers.
The Group maintained a strong balance sheet with net assets of £15.7m giving a strong foundation to build the future of the Group.
Brian Palmer, Founder of Tharsus Group said: “I am pleased to report a solid performance from Tharsus Group despite the difficult trading conditions for our customers and our company. With a strong financial foundation, we have continued to invest in our future, making progress in the development of game-changing logistics automation products which we’re trialling with customers. I am grateful to all our Tharsus Group colleagues for their innovation and resilience, and to our partners for their collaboration in pursuit of delivering tech that matters.”
