Unipres headcount continues to fall despite return to profitability

Automotive firm Unipres has returned to profit but saw its headcount reduce by more than 100 during another difficult year for the car industry, new accounts show.

The Sunderland-based firm, which is a key supplier to the nearby Nissan plant, has released accounts for 2022 in which its revenues grew from £151.6m a year earlier to £173.9m. Over the same period, an operating loss of £15.7m was turned into a profit of £2.8m.

Unipres said that its return to profit was due to “improved customer demand despite the semiconductor/component shortages”, but did not recommend the payment of any dividend. Instead a retained profit of £100,000 was transferred to the company’s reserves.

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And despite what it described as a “challenging year”, Unipres said that it had invested £2.9m to update ageing pressing machines to help ensure the long-term viability of the North East site. It also highlighted the continuing work of its Unipres Training Academy, which it said had worked with local schools as well as seeking to improve the skills of its own apprentices and other workers.

But the company - which stamps and assembles parts for motor vehicles - also revealed that its staff numbers had fallen for the fourth consecutive year, going from nearly 1,000 to just over 850. The accounts reveal that the company’s costs included £868,000 of redundancy payments.

Company secretary Andrew Fawell said: “During 2021 and 2022, the business has suffered from the global semiconductor shortage that has impacted the automotive industry and resulted in the original equipment manufacturer (OEMs) suspending production at short notice through this period. The semiconductor and component shortages has continued into the first quarter of 2023, although is expected to recover during the year.”

The bulk of Unipres’ 2022 income came from a 42% increase in automotive components (to £153m) as the global semiconductor shortage began to ease and the price of steel increased. Tooling sales of £20m were around half of the level seen a earlier.

Figures released last week by industry body the Society of Motor Manufacturers and Traders (SMMT) showed that UK car production rose 11.7% in the first half of 2023 as supply shortages eased. 450,168 new cars were manufactured in the UK between January and June, compared with 403,131 during the same period last year, with the increase driven by exports, which were up 13.6% to 359,940.

SMMT chief executive Mike Hawes said: “UK car manufacturing is growing again, with production - especially of electrified models - increasing and major investment announcements making headlines. This is testament to the resilience of the sector and its undoubted strengths: a skilled and productive workforce, world-class R&D (research and development), and efficient, productive plants.”