14 February 2022

Quartzelec, a leading independent engineering service provider with facilities throughout the UK and an ever‑extending global reach, has continued to provide vital services throughout another year of interruption caused by the COVID-19 Pandemic. Designated as an essential service provider to many critical industry sectors including power generation & renewables, utilities and the NHS helped trading levels improve over the course of the financial year and see turnover increase to £65.658m, with operating profits climbing to £2.218m for the financial year to 30 September 2021.

Several factors have helped Quartzelec’s operational resilience during these extraordinary times including a diverse market sector and customer base and a skilled and flexible workforce coupled with remote systems and strong management. Additionally, the ability to operate across geographically diverse UK and international locations along with collaborative working and a broad and robust supply chain have also played a key part.

The safety and wellbeing of both customers and employees has been an ongoing primary concern for Quartzelec. Safeguarding measures have been put in place and the provision for remote working, use of technology and cognisance of government guidance helped reduce travel, avoid unnecessary gatherings and allowed appropriate social distancing to be maintained across its operations.

“In what continues to be unprecedented times our people have come up against some operational challenges, but as a team we have continued to support our customers and protect our business,” stated Stephen Morrison, Quartzelec’s Managing Director. “COVID-19 has continued to have a significant impact across the globe with many of our overseas markets also suffering from restrictions, but despite travel difficulties and impacted operating limitations being imposed we have continued to serve key markets, subject to local constraints. Orders received during the year increased by 8.3% to £65.658m and continue to build, back towards the pre-COVID-19 level of £73.825m, as reported in 2019, however overseas services in the European Union have also been slightly affected by the impact the BREXIT transition has had at the end of 2020.”

“Our turnover has also been impacted in a similar way to orders with some delays in material deliveries through the supply chain. Gross margin has increased from 7.5% to 9% partly due to increased cost control measures and improved labour utilisation following the restructuring at the end of the last financial year, implemented to improve lifetime customer value.”

Throughout the year the directors developed and implemented sound strategic financial judgements which helped consolidate the balance sheet. Net assets increased to £13.6m including £9.2m of cash giving a stable foundation for the current year.

Quartzelec places special emphasis on its people, particularly when it comes to safety and training programmes, both in the UK as well as International operations, and despite the pandemic and wider economic situations, have continued to push its environmental and community agendas forward. Quartzelec continues to implement relevant standards including ISO14001: Environmental Management Systems and ISO45001: Occupational Health & Safety Management Systems, although the full rollout was delayed due to Coronavirus, they continue to work towards accreditation across all locations.

Stephen Morrison further commented: “We expect it to remain buoyant during 2022, and whilst the pandemic may yet provide further challenges, the company should continue to trade profitably in the forthcoming financial year, particularly as global restrictions ease.Investment, including the recruitment and training of personnel, will continue where appropriate to drive and support the future success of the Company”

Financial Key Performance Indicators to 30 September 2021

Providing vital services and support to the UK’s National Health Service (NHS), Ministry of Defence (MOD) and UK construction sector, Quartzelec’s global market support extends across power generation including hydro and renewables; oil, gas & petro-chemical; utilities other energy production and distribution industries; metals and mining; manufacturing, communications, and maritime.

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