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Strong Year at Airport Baggage Firm

  • 29 June 2017
  • Author: Joe O'Connor
  • Number of views: 72
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Strong year at airport baggage firm

A Hull-headquartered manufacturer of airport baggage handling systems has more than doubled sales and slashed losses after making "substantive improvements" during the year.

Part of the Daifuku Group, Daifuku Logan is based on the city's Sutton Road and employs a workforce of about 110.

It has installed more than 400 airport baggage-related systems worldwide over the past 50 years.

For the year to 31 December 2016, the company reported turnover of £30.5m compared to £11.8m in the previous 12 months.

Pre-tax losses were also slashed from £6.16m to £620,000.

In a strategic report accompanying the results, the company said 2016 trading "again saw substantive improvements".

"Overall trading volumes were up," it added. "Profitability at gross margin level recovered, pushing DLL into an operating for the full trading year 2016.

"Aviation industry sector key indicators again showed strong and sustained growth conditions in key business markets, resulting in increased capital expenditure on infrastructure and specifically baggage system investment. Planned investment in new screening technology has now taken hold with many European wider and global airports, resulting in contract awards and a strong order pipeline."

Daifuku said the key risks it faced during the year revolved around political and economic uncertainty, including the "unknown consequences" of Brexit.

However, it added that there are investment opportunities in a number of European countries, while it is also enjoying success in Africa. Growth in China has slowed, although Daifuku stressed that it is still "well positioned" to take advantage of opportunities as they emerge.

"Supporting each business stream is a set of goals, objectives and improvement targets," concluded Daifuku. "Meeting the plan is paramount in 2017 and onwards."

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