Sevcon turns the corner after surge in orders
Jul 30 2010 by Peter McCusker, The Journal
ELECTRIC vehicle technology company Sevcon says it has turned the corner after returning to profit after a surge in orders.
The US NASDAQ listed company, which operates from the Team Valley trading estate Gateshead, has posted revenues of US $19m (£12.5m) for the nine months ending June, a rise of 20% from the US $15.8m (£10.1m) in the corresponding period last year.
Pre-tax profits for the period came in at US $424,000 (£271.140) compared to a loss of US $1,124,000 (£720,000) last year.
The company which was founded in Gateshead in 1969 has its headquarters in Boston but generates new product development from the North East.
Sevcon is one of five global operators in the electric vehicle control technology market for the industrial market such as fork lift trucks and its technology is now being applied to the low carbon, on-road vehicle market.
Its controls act as the ‘brain’ of the vehicle system. Linking the battery to motorised functions, the control units are used to vary the speed and movement of electric vehicles, to integrate specialised functions and to optimise energy consumption.
The company’s improved performance in the last nine months has been partly the function of over 15,000 unit sales of its new Gen 4 controller, compared to only 600 sales in the corresponding period last year.
So far this year it has taken on an additional 10 staff in the North East bringing employee numbers to 55 and it expects to have 60 regional staff by the end of the year.
Sevcon president and CEO Matt Boyle, who is based in Gateshead, said with further launches of the Gen 4 family due to come on stream this year the company will continue to grow.
Mr Boyle said: “The developments of the last few years have put the business in a strong position and we are very happy with our recent progress.
The company has stepped up its drive to provide control functions for the new range of electric vehicles and was given a boost earlier this year when it received £250,000 research and development grant from One North East.”
“As interest in low-carbon technology extends from on-road vehicles, bikes and scooters, the company is therefore in a strong position to meet any new demand that emerges.”
Sevcon employs 100 people worldwide with facilities in Wrexham, Paris, Tokyo and Seoul. Its customers include Toyota, Ford, Hyundai and Nissan.
