Work on MoD projects at A&P Falmouth was a major factor in boosting A&P Group profits and turnover from £74.5m (2020) to £88.5m pounds sterling during the financial year ended March 31, 2021.
This is reflected in operating profit of £4,881,000 in March 2021, compared to £1,633,000 in the same period in 2020.
Group profit for the year was £3.68 million (2020: £895,000).
During the reporting period, Steve Jones, A&P Falmouth’s Managing Director of Operations and Site, and Gerald Pitts, Managing Director of A&P Defense, were the men in the hot seat.
In his strategic report, CEO David McGinley said the year ended March 31, 2021 “saw a return to higher revenue levels due to a return to standardized military refit programs through the Royal Fleet Auxiliary (RFA), absent the previous year”. Many RFA cluster ships assigned to Falmouth were on deployment in 2020.
Port operations suffered at Falmouth due to a complete lack of cruise revenue following the pandemic, but overall strong berth and tug revenue were driven by military project activity in the Falmouth ship repair sector.
He went on to explain how Covid-19 and Brexit affected revenue: “The impact of the above resulted in an increase of some £25 million in revenue over the year, offset, in part, by a reduction in off-site military work, as some major contracts were completed the previous year, as well as a drop in commercial ship repair revenue due to the Covid-19 pandemic and Brexit.
“The group has focused on the groundwork laid in previous years by continuing to make itself known both in the traditional ship repair and conversion market, but also in the renewable energy, oil and gas sectors. and gas and in modular manufacturing for the shipbuilding industry.
“These, together with the generation of a satisfactory result by the management and the workforce, continue to confirm A&P as one of the leading companies in shipbuilding and repair, ship conversion and marine engineering in the UK.
“These results are considered satisfactory given that they were achieved during the global Covid-19 pandemic and are a testament to the hard work and dedication of our employees which has intensified during this time.”
A&P Group is considering various new sectors while taking advantage of the strategic locations of Tyne and Falmouth in the UK. Mr. McGinley acknowledges that: “Both ports are well placed to secure work within the supply chain and to provide support services to the emerging renewable energy sector, the National Shipbuilding Strategy, as well as to the heavy engineering oil and gas industry.
“The Board recognizes that activity in the latter sector remains subdued, but is paying particular attention to initiatives in this area and continuing to develop links in the operation and maintenance part of the offshore supply chain.”
Windfarm projects for the Celtic Sea, coupled with Falmouth’s location, make the port ideal to become a hub for the manufacture of these structures and the servicing of the windfarm vessels that install and maintain them. .
Looking ahead, Mr McGinley added: “The continuation of the RFA Cluster contract via the Lifetime Global Scope contract, as well as military contracts under Future Submarines and regular A&P UK commercial activities , will provide a solid revenue base for the foreseeable future.”