Sheffield Forgemasters reduces losses

However, reduced activity in the oil and gas sector and high energy prices have continued to pose challenges

Heavy engineering firm Sheffield Forgemasters has reported a reduction in losses for the financial year ending 2015.

The company’s financial results show it has benefited from steps taken to streamline the business and implementation of a turnaround plan, with an operating loss of £4.8 million – a pro-rata loss reduction of more than £3 million on the previous 18-month financial year.

The company posted a turnover of £72.8 million for 2015, compared with £122.4 million for  the 18-months to December 2014.

The company said dramatically reduced activity in the traditional oil and gas sector, the slow down of growth in the global economy and high energy prices have continued to pose challenges, but management remains confident that 2016 will show further improvement.

Chairman Tony Pedder said: "Although we anticipated the business to run at a loss for the financial year ending 31 December 2015, we are encouraged to see that steps to streamline the business and early implementation of the turnaround plan is having a positive effect.

"Outlying circumstances such as high energy costs, a collapsed oil and gas sector and long-term effects of a global economic downturn still conspire to make trading very difficult across all sectors.”

He added: “However, we are confident that the company is heading in the right direction and that our work to maximise efficiencies, break into new markets and continue investment into new technologies and processes will pay dividends in years to come.”

Earlier this year the company announced it was to make up to 100 redundancies and was subject to takeover rumours at the end of 2015.