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FAUN MV Ltd – the UK subsidiary of the German manufacturer of municipal vehicles – said a drop in sales of its refuse collection vehicles (RCV) last year had been largely offset by strong demand for its TRACKWAY range of ground mobility systems, according to its annual trading update for the year ending 31 December 2009.
Total sales were down marginally at £25.3m (2008: £27.1m) representing a robust financial performance against a challenging economic backdrop. There was a significant improvement in operating profit to £467,000 (2008: £68,000) driven by cost reductions and strong fiscal discipline. TRACKWAY was responsible for export growth of 4% to £5.7m (2008: £5.5m) – the third year of successive year of overseas sales growth.
The business, headquartered in Llangefni, Anglesey, said sales of its temporary roadway and aviation systems – which are used by 40 armed forces worldwide - grew on the back of new orders from several European militaries.
Sales of its RCVs dropped as local councils scaled back their procurement budgets for new equipment.
FAUN MV, which was established in the UK through the acquisition of British defence manufacturer Laird (Anglesey) in 1996, said that demand for RCVs was likely to remain subdued in 2010, while it expected TRACKWAY to further accelerate its sales growth due to rising demand from armed forces.
The TRACKWAY product range includes several types of aluminium temporary roadway system, which enable vehicles to pass over adverse terrain such as snow, marsh, mud and sand. It also includes helicopter landing mats, portable runways and rapid runway repair systems for bomb-damaged airfields. The company is a prime contractor to the UK Ministry of Defence.
Alun Jones, managing director of FAUN MV, said: “While RCV sales have fallen away due to restraints in public sector spending, our TRACKWAY division has delivered another impressive year of growth, thanks to our pedigree in the manufacture of military grade equipment, the quality and innovation of our product range and a continued sales and marketing drive with armed forces worldwide.
“The division’s order book is healthy and we anticipate overseas sales to continue growing sharply this year and beyond as we capture an increasing market share.”
He added: “Our research and development team is also in the advanced stages of several new products which we expect to bring to market within the next 12 months.”
“Against a challenging economic backdrop, the UK business has delivered a robust performance and the commitment of our 100-strong team has played an important part.”
FAUN MV is part of the FAUN Group, which has manufacturing facilities across Germany, France and Switzerland. It is one of four companies within the Kirchhoff Group, alongside WITTE tools, mobility vehicle manufacturer REHA and automotive parts group Kirchhoffe Automotive.
The company, which employs over 100 people, also announced it had been awarded the ISO 14001 Environmental Standard earlier this year, demonstrating its commitment to sustainable manufacturing. It was also shortlisted in the EEF North West Manufacturing Awards for Innovative People Practices and has recently achieved Investors in People.y.co.uk
  
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