Member Article

Italian acquisition key in driving record revenue at Sevcon

Gateshead-based low-carbon vehicle firm Sevcon has reported revenue record results, with its acquisition of an Italian battery charging business performing particularly well.

Turnover rose by10% for the first six months of the year, rising to £15.4m, up from £14.1 in the first six months of fiscal 2015.

Earlier this year Sevcon purchased Italian battery charging business Bassi in a deal valued at over £10m.

Sevcon Chief Executive Officer Matt Boyle said: “We reported strong revenue growth in the second fiscal quarter due to the acquisition of Bassi, which more than offset slower sales of our traditional controllers and capacitors.

“The lower traditional sales were due to continued weakness on the industrial side of the business as a result of macro-economic conditions and customers reducing inventory.”

Sevcon posted an operating loss of £1.4m, after charging £970k in acquisition costs associated with Bassi although Mr Boyle sees the long-term value in the deal.

Mr Boyle continued: “Our Bassi acquisition performed excellently and ahead of our expectations and the integration is proceeding well. Bassi reported $4m in sales since the January 29 acquisition, representing record months for the business.

“Adding Bassi’s state-of-the-art battery charging technology and power management capabilities to Sevcon’s advanced control technologies significantly strengthens our ability to deliver the more integrated solutions that our markets and our customers are demanding.”