Clyde Union Pumps Hopeful for Future
Clyde Union supplies pumps for the oil and gas, nuclear, and conventional power generation industries. In 2011, the company was sold as part of Jim McColl’s business empire to SPX and currently operates as part of SPX’s flow technology business. In the year following the acquisition, Clyde Union struggled to achieve high operating performance and profit. This outcome is changing due to restructuring and job cuts.
2012 was a year of adjustment and integration for Clyde Union under the new owner. Based in North Carolina, SPX purchased Clyde Union for £750m. The latter reported that its 2011 and 2012 results were a result of poor outcomes from several contracts in new and developing markets. In response, a new contract approval process was instituted.
Changes in management and job cuts have also contributed to decreased losses for the company. Clyde Union lost joint chief executives Thomas Burley and Keith Mitchell in 2012, cut 90 jobs during restructuring, and bid £1.58 million to improve operating performance. The highest-paid director at the company received £248,000 including £68,000 in lieu of notice.
Last month, SPX announced plans to make160 staff at its Clyde Union plant in Glasgow redundant following a formal consultation with both trade union and employee representatives. An official statement released at the time says: “As is customary with SPX’s approach with all acquisitions and integrations, we are actively working with SPX Clyde Union to assess and identify potential synergies with SPX and business improvements that will increase our ability to service our customers.
Pre-tax losses came in at £7.13m, down from £10.74m, with revenues from continuing operations rising by 14 per cent to £126.7m. Operating profit before amortisation of intangibles was £1.4m compared to an £800,000 loss. Finance costs fell to £4.3m from £8.5m reflecting a revised loans and borrowings structure put in place following the acquisition by SPX. The total order book at the end of the year stood at £105m, down from £147m.