Bus manufacturer Alexander Dennis sees profits soar

Posted on 1 Jul 2013 by The Manufacturer

Bus manufacturer Alexander Dennis has announced a sharp rise in turnover and profits following strong international sales for last year.

The Falkirk-based company reported turnover climbed from £357m to £481m last year, while pre-tax profits grew by 56% to £24.2m.

Alexander Dennis performed particularly well in its key markets of North America, Australasia and Asia Pacific, where total international turnover rose by 270% to £137m.

The firm’s chief executive Colin Robertson, said he expects the progress to continue in international markets for this year.

“Whilst the macro outlook in the UK remains mixed, we are cautiously optimistic that the strong financial performance in 2012 will be maintained in 2013,” he said.

It now employs 2,400 staff worldwide, and has seen its strongest performance in Asia Pacific, where turnover increased nearly three-fold after a particularly strong showing in Hong Kong.

Domestically, it retained its 47% share of the UK bus market, which grew by 17% in 2012 to just over 3,000 new chassis registrations – its highest level for three years.

The company cited demand in the first part of 2012 in the build up to the Olympics as a factor, after admitting the second half of the year saw a more cautious approach from customers wary of the ongoing UK economic outlook.