Redditch aerospace manufacturer Mettis Group poised for strong recovery and regrowth

Mettis Aerospace new factory

The Redditch-based aerospace manufacturer Mettis Group’s latest annual results for 2019 show that the company entered the Covid-19 pandemic in a strong financial position following another year of growth.

Group sales increased by £3.6m (4 per cent) to £86.1 million (£82.5 million in 2018) and underlying EBITDA increased by £1 million (seven per cent) to £15.6 million (£14.6 million in 2018). Growth was primarily driven by increases in demand for products Mettis manufactures for a variety of leading aircraft programmes as well as the introduction of new products to market.

The company is a global designer and manufacturer of forged, machined and assembled components for aerospace, defence and other sectors.

Mettis said that its strong financial position, product diversification and agile leadership have enabled it to respond rapidly to the pandemic. At the peak of the outbreak, 70 per cent of aircraft were grounded and airline traffic was reduced by 95 per cent. Like many other companies operating in the aerospace market, Mettis has proportionally scaled its operations in line with reduced demand from industry primes including Airbus, Boeing, Rolls-Royce and Spirit Aerosystems while maintaining all core capabilities.

The company has remained operational throughout the pandemic due to continued commercial aerospace demand, albeit at significantly reduced levels, together with maintaining an uninterrupted supply across a number of UK defence programmes. When the pandemic began, the Ministry of Defence confirmed Mettis’ employees were essential workers due to the company’s position within the UK defence supply chain.

Mettis’ response to the pandemic and historical delivery track record provided confidence to the company’s majority shareholder, Stirling Square Capital Partners, which has provided additional funding and negotiated a two-year extension to its banking arrangements.

Mettis was well placed for growth prior to the pandemic and remains in a strong position to benefit as the aerospace industry recovers:

£10.4 million was invested during 2019 in equipment, technologies and site enhancements, including a new UK factory with advanced machining capabilities, bringing total capital expenditure over the previous four years to more than £27 million.

Gordon Fraser, Chief Executive and Group Executive Chairman, said: “Mettis’ period of uninterrupted growth had been set to continue for years to come. The pandemic has been challenging for the whole sector but our strong foundation and track record has helped us protect our business during the crisis and prepare ourselves for rapid regrowth as the market recovers.”

Mettis Group is a global designer and manufacturer of forged, machined and assembled components for aerospace, defence and other sectors.