MB AEROSPACE has cited the cumulative effect of acquisitions it has made in the last five years as the engineering company lifted turnover beyond $200 million for the first time.

 

And the Motherwell-based group highlighted its potential for continued growth by investing in its capability to serve the next generation of commercial jet engine platforms, due to come on stream in the coming years.

MB acquired manufacturer Norbert Industries in a multi-million dollar deal last year, giving it access to increased capacity, customers and capability at sites in Michigan and Poland. The Polish facility, in Rzeszow, gave it access to the "huge" Aviation Valley and "cost-competitive" capacity, while the US site had brought it complementary customers and synergies thanks to its proximity to Gentz Industries, the Detroit company it acquired in 2011.

MB chief executive Craig Gallagher said the acquisition was among several made by the company in the last five years which brought strong revenue growth in 2014, alongside growth from existing operations.

Turnover at MB exceeded $200m (£130m) during 2014, with the firm having targeted sales of $100m the year before.

Mr Gallagher said 2014 had been a "positive" year. "We've made quite a number of acquisitions in the last four, five years and they have all settled and grown well," he said. "It is probably the culmination of that.

"It is an industry that's growing. There is quite a bit of challenge with cost, and putting capacity in ahead of a ramp in '17, '18, but we're delighted to have grown and settled the acquisitions in as well."

Mr Gallagher highlighted the opportunity for aeronautical engineers such as MB from the backlog of orders faced by Airbus and Boeing, in light of the "huge growth forecast" for the airline sector.

That in turn has led to a backlog of work for Rolls-Royce, Pratt & Whitney and General Electric Company - the three dominant engine manufacturers in the aerospace sector - which firms like MB are looking to serve. Mr Gallagher said: "It means a lot of people like ourselves are developing a lot of new parts now for those new platforms, so that when they get certified and move into production around about '17, '18, you can cope with the growth opportunity that is there.

"Our business model is about trying to support the whole life cycle of engines. We're supporting something like 67 different aero engine platforms.

"The installed base that is flying today is probably about 85 per cent of our business. Fifteen per cent of our business is new product introduction, which is obviously going to grow and expand."

MB's acquisition of Norbert Industries followed its purchase of Connecticut-based engine component manufacturer Delta Industries in2013, and Gentz in 2011.

Mr Gallagher said the firm is "still active" on the acquisition front. "Clearly it is an exciting time in the market, and the valuations reflect that," he said.

"We've been active on acquisitions this year and not done anything to fruition, so I think that is going to always be part of our strategy."

MB, backed by US private equity firm Arlington Capital Partners, currently employs about 960 staff, with around 120 in Scotland.

Mr Gallagher was speaking ahead of the Paris Air Show, the annual international gathering for the aerospace industry, which takes place from June 15 to June 21.