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Sevcon, in Gateshead, sees growth in sales
AN electric vehicle parts maker, which previously warned it was suffering from a lack of skilled North-East engineering talent, has continued its resurgence after increased sales brought a return to profit.
Sevcon, based in Gateshead, saw revenues rise to £5.8m in the third quarter, with operating profits standing at £191,000, compared to a £1m loss for the first half of the year.
The company, which makes motor controllers for Renault's two-seater Twizy quadricycle and parts for Brammo motorcycles, says revenues have increased from £4.3m in the first three months of its financial year.
Total revenues for the nine months ending June 29 revealed sales were down to £15.2m from £17.9m.
It had suffered from the global economic uncertainty caused by the US fiscal cliff deliberations and the Eurozone difficulties.
The firm, which employs about 70 workers, earlier this year revealed it had launched a £200,000 bursary scheme to fund students through university and become the region's next generation of engineers after having to bring in specialists from China, Iran and Colombia.
However, Matt Boyle, Sevcon president and chief executive, said: “Our traditional off-road business was up robustly year-over-year, particularly in Asia, despite continued weakness in the global mining sector, though this growth was offset by lower sales in our on-road business, primarily in Europe.
“At the same time, restructuring carried out in the second quarter are on track to deliver £1.3m savings.”
Mr Boyle said the company has expanded its relationship with suppliers across Europe, Asia and North America, and signed two deals with Scandinavian vehicle makers to launch new electric models.
He said: “We are well-positioned for the challenges ahead, are in the right place at the right time with our technology and products, and remain committed to growth and improved profits.”
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