Sertec Group

Sertec return to growth

Sertec Group — 17/12/2019

Made in the Midlands member Setec, a Jaguar Land Rover supplier headquartered on the edge of Birmingham is projecting a more than 50 per cent increase in EBITDA and said it is performing ahead of expectations.

Newly filed documents for Coleshill-based Sertec Corporation for the year to 31 March 2019 have revealed its turnover went from £273.4m to £232m while it made a pre-tax loss of £8.9m after reporting a profit of £4.6m in the prior 12 months.

Sertec said its performance was down to it being forced to cut jobs, close sites, agree "economic adjustments" with its customers and suppliers as well as launch a "comprehensive review" of the facilities it acquired as part of the purchase of the Wild Group in August 2016 as a result of Jaguar Land Rover's "sudden and unexpected" decision to reduce its parts orders in October 2018.

A statement signed off by the board said:

"The group reported a 15 per cent year-on-year decrease in turnover which was the significant contributing factor to the group reporting a small underlying operating loss."

The board also decided in March 2019 to agree a refinancing plan which would provide the group with "sufficient financial resilience" to be able to cope with similar events should it happen again in the future.

Completed on 28 June 2019, the move strengthened the group's balance sheet and provided it with £10m of new cash.

Sertec added that while the measures incurred one-off charges, it still reported an EBITDA of £10.1m which it said was "reassuring".

The group has forecasted that it will achieve a higher EBITDA for the year to 31 March 2020.

Also during the year significant investment in additional presswork capacity and automation was completed and the logistics functions were centralised into a new distribution centre at Hams Hall in north Warwickshire.

The group also confirmed that it secured nearly £1bn-worth of new contracts during the year.

Chief executive Grant Adams added:

"Given ongoing uncertainty, the past 12 months hasn’t been without its challenges across the wider sector, but we’re stronger for it and already seeing the rewards with new contract wins from a number of car manufacturers.

"We’re optimistic about the year ahead. Our ongoing investment in new technologies is what’s made us one of the UK’s leading OEM suppliers.

"The opportunity in the industry around electric vehicles is huge and we’re at the forefront of that.

"Internationally - our site in Hungary is perfectly placed for the mainland European market at the centre of an automotive manufacturing hub. Our aim is to double the turnover of this location in coming years."

Source: Insider Media Limited

Join Made in the Midlands today, find out what plan is best for you by clicking the link below.

https://madeinthemidlands.com/benefits

Sertec’s biggest acquisition sees new foothold in Europe

Sertec Group — 25/08/2016

Major automotive supplier The Sertec Group has announced their largest ever take over with the 100% acquisition of Midlands headquartered WILD automotive (AWC Industries Ltd) creating a £250m turnover Group with 10 manufacturing plants across the UK, Germany and Hungary.

The deal represents a transformational opportunity for Sertec through enhancing its product capabilities, customer portfolio and providing an international platform at the heart of the European automotive hub.

The WILD group of businesses specialise in the manufacture of high quality technical components and assemblies for Automotive OEMs and Tier 1 suppliers.

Specifically, WILDs expertise is in precision components, fine blanked components, wire forming, wire seat frames, spring parts and complex stamped assemblies, with the business enjoying a leading market share in the supply of wire seat frames to the UK automotive industry.

Whilst Sertec currently manufactures wire products, this is not its core capability and the acquisition of WILD will significantly enhance the companys offering to both existing and potential customers.

With WILDs manufacturing plants in Witton Birmingham, Redditch, Hungary and Germany, this is the perfect fit for Sertec to fulfil its European expansion plans.

Combined with Sertecs primary experience in steel and aluminium body structural assemblies, WILDs own strengths present an exciting opportunity to diversify into the manufacture of other components, in areas of a vehicle not yet explored by Sertec.

The acquisition is precisely the kind of accelerated growth provided for by the £20m funding invested in Sertec by Business Growth Fund (BGF) and Lloyds Banking Group back in February this year. Both have invested further to support this latest transaction, alongside Santander Bank, which makes its first syndicated contribution to the growth plans of Sertec. In addition, K&H provided local asset finance in Hungary.

Sertec Group Managing Director Dave Steggles said This is probably the most important acquisition in Sertecs history, not only because of the size of the business, but because of the new opportunities it presents. The expertise and experience of the Wilds Management Team will be invaluable in our future growth plans.

WILDs skill set complements ours and together we can develop an even broader engineering expertise to offer our combined customer base. Whilst we can now provide our own customers even greater capability on wire and spring products, we very much look forward to working with the new customers WILD brings to the Group, and the opportunity to introduce our expertise to their businesses.

Additionally, our continuing development and knowledge in lightweight technologies is enhanced by the engineering resource now available to us at WILDs facility in Germany.

The Germany and Hungary operations give us the foothold in both Western and Eastern Europe we were looking for, to help support our own existing customers expansion. This is absolutely right for Sertec in so many ways.

Sertec CEO Grant Adams said The additional support of our funding partners has enabled us to implement this, the next stage of our growth plans and it comes hot on the heels of our agreement to centralise our Logistics operation at Hams Hall Estate. This acquisition is essential to not only our own vision, but to that of our major customers.

I would also like to acknowledge Allan Cook and his management team for their outstanding work in building WILD into the business it is today. As Allan retires from the business, I can assure him that the contribution of his business to the Sertec Group will be significant and vitally important to our future.

The Midlands deal team at PWC acted as both lead advisor on the acquisition and provided debt advisory support for the refinancing with Weightmans providing legal advice to Sertec. Quercus & Penningtons acted on behalf of AWC Industries.

Sertec secures quality succession

Sertec Group — 02/11/2016

International automotive supplier Sertec has awarded a shareholding to its Group Quality and Projects Director Peter Pugh, in a move to reward and secure his services for the future.

Part ownership will take the form of growth shares, based on the increasing value of the business.

Peter joined Sertec as a Quality Engineer when the company acquired GN Hicks in 1993 and quickly developed to become Quality Manager for the Birmingham based business. His drive and devotion to improving quality procedures saw him rewarded with a place on the Group Board in 2010.

This coincided with Sertec Birmingham earning the accolade of Jaguar Land Rovers Best Supplier for Quality Performance and being awarded JLRQ accreditation in the same year.

Announcing the provision of Growth Shares to Peter, Group Finance Director Martyn Hughes said As the shape of our business changes through growth, we need to add more pillars of strength to the solid foundations which already exist at Sertec. Peter has been a long standing and influential policy maker on quality projects within the Company and he is very much part of the succession plans for the years ahead.

Group Managing Director Dave Steggles added, Sertec is evolving to the needs and aspirations of the global automotive industry; and as we expand our international footprint, Peters stringent supervision of standards within the Group is essential to our future.

Sertecs principal shareholders decision to offer growth shares to key people within the business has been fully endorsed by investor partners The Business Growth Fund, who first teamed up with the company in February this year to inject capital to help accelerate growth.

Sertec has since opened a new Logistics Centre at Hams Hall near Coleshill for the distribution of finished goods and additionally, with extended syndicated banking facilities provided by Lloyds and Santander together with a further BGF investment, has acquired Wild Automotive, in a deal which increased the size of the business to £250 million, now employing over 2,500 people.

Sertec Drives European Growth with £4m Investment

Sertec Group — 05/01/2021

Automotive components manufacturer Sertec Group has landed a £4m investment from growth capital investor BGF as the business looks ahead to European growth.

Since BGF’s initial investment in 2016, the business has expanded its customer base, invested in new technologies and established a strong European footprint through acquisitions and new hires.

This year, Sertec has secured significant new contract wins in the electric vehicle (EV) and lightweight technology markets using its engineering expertise and innovative technology know-how.

The company has recently completed a world-class battery component assembly line in Coleshill.

Grant Adams, CEO at Sertec said: “We’re ambitious about continuing to grow the company and BGF’s additional investment allows us to build on the strong foundations we’ve put in place. We start 2021 with a strong balance sheet and exciting growth prospects in Europe underpinned by our recent hires. Juergen Schreiner joins as European sales director and Antal Mihalicz has been appointed managing director in Sertec’s Hungarian operation.

“Our technology positions us at the forefront of the sector to take advantage of the huge potential presented by the growing EV market in the UK and Europe.”

This investment news follows the appointment of Nick Sanders as non-executive chair in May 2020.

BGF investor Tom Horton said: “BGF’s renewed commitment to Sertec is testament to the strength of the business’ leadership and ongoing investment in new technologies.

“In a very challenging year, the company has continued to secure significant, long-term contracts as it expands its customer base. We look forward to working with the team in its next chapter of growth.”

Sertec Group operates across eight sites, with six manufacturing sites in the Midlands in the UK, one manufacturing site in Aszar, Hungary and one in Hückeswagen, Germany, plus a tooling technical centre based in Dongguan, China.

DLA Piper advised the company and Shoosmiths acted for BGF.

(Source: Business Desk)

Tina stamps her mark for women in manufacturing

Sertec Group — 18/01/2017

As the face of automotive engineering continues to change at pace, a greater number of women are being employed on factory shop floors than ever before.

But where managerial positions were once the sole domain of men, women in manufacturing are now taking up key roles in the industry.

Automotive supplier The Sertec Group is a manufacturer employing 2000 people in the UK, 15% of which are women. But 2017 heralds the appointment of the companys first female Plant Manager.

One of a number of changes within the Group, Tina Vaissiere is promoted from within to take up the position of Plant Manager of Sertecs Light Stampings operation in Aston, Birmingham.

Sertec Group Managing Director Dave Steggles was full of praise for Tinas rise through the company. Whilst we have senior managers in both Learning & Development and Accounts departments, this is our first senior female appointment in an engineering operations capacity. Not only is this very important to us here at Sertec, but we believe it sends out a strong message to our industry as a whole about women in engineering. Tina commands the respect of her colleagues through her knowledge, experience and sheer hard work and fully deserves this new role.

Importantly, Tina has earned her spurs with 20 years manufacturing experience, starting her career as a Press Operator at wire forming company Tulgrove, gaining further experience in assembly, purchasing and sales.

With the acquisition of Tulgrove in 2010, Tina became an integral part of Sertecs Presslite business, (now renamed Sertec Light Pressings) developing into coordinator roles in both logistics and manufacturing at the companys longest standing factory site, on Holborn Hill, Aston.

Tina takes over the reins from another success story of a career developed through acquisition.

Scott Taylor joined Sertec as a Customer Analyst when SEP Presstech was bought in 2000. He later became Logistics Manager at Presslite and struck up a strong working relationship with Tina, which has served the business well ever since.

Experience gained in Operations and then MP&L Management roles eventually led him to become Plant Manager for the Aston and Saltley sites last year.

Scott hands over the lead role to Tina as he is promoted to Group Logistics Manager, based at Sertecs Group Logistics Centre at Hams Hall near Coleshill.

Group CEO Grant Adams said As both Tina and Scott take on key positions within the company, it is important to note that both of them have worked with us through acquisition of their previous employers and have seized the opportunities presented to them. We are always keen to promote people from within and both are evidence of the career paths afforded by Sertec.

Sertec presses ahead with £10m+ ‘ZANI’ investment

Sertec Group — 07/04/2016

One of the UKs fastest growing automotive suppliers has signed its largest ever press investment ahead of MACH 2016.

The Sertec Group, which is a world class manufacturer of stampings and welded assemblies, has tapped into the machinery expertise of Bruderer UK to identify and purchase 12 machines to help them meet growing volume demands from many of the worlds largest car makers.

The first tier supplier has committed more than £10m to the three-year modernisation programme that has seen it start to install a host of ZANI Motion Master presses (with unique ram velocity slow-down kinematics), ranging from 250 to 800 tonnes.

It marks the continuation of a long-term relationship between the company and Bruderer UK and will give it the speed, quality and capacity to develop structural stampings in both steel and aluminium for all of the new Jaguar Land Rover models.

We have been the exclusive sales, spare parts and service provider for ZANI for more than two years in the UK and this is without doubt the biggest deal weve ever agreed, explained Adrian Haller, Managing Director of Bruderer UK.

Our specialists were invited in by Sertec to look at an upgrade plan for part of its press shop. We looked closely at its requirements, the end application and predictions of volumes going forward, with the answer to many of these questions being ZANI.

He continued: The Italian firms presses have been used by Sertec for more than 20 years and are renown for their durability, precision and their ability to prolong tool life. It initially started out as six machines, but quickly grew to 12, with all of them being fitted with coil lines and servo feeds.

Our engineers will also be responsible for providing a full service, maintenance and spares programme that will ensure the presses are operating effectively and suffer from the minimal amount of downtime as possible.

Dave Steggles, Managing Director of Sertec Group, added his support: We expect to grow our £197m turnover significantly in 2016 and the key to continuing this momentum is to ensure we are investing in our technology and our capability.

This project is unprecedented in terms of size and has quickly escalated from 6 presses to 12. Its a learning curve, but one well complete and one that will deliver greater quality, manufacturing performance and capacity to our customers.

This news comes less than a week before Bruderer unveils the BSTA 410-110 at MACH, the first time the high speed press will have been seen in the UK.

Adrian concluded: MACH is a massive show for us and were delighted that well be able to showcase a number of new ZANI presses, along with some structural automotive parts manufactured by Sertecanother example of our collaborative approach.

For further information, please visit www.bruderer.co.uk or www.sertec.co.uk

Sertec’s acquired business awarded JLR Quality Standard

Sertec Group — 09/10/2016

Sertecs latest acquisition Wild Automotive has been awarded Jaguar Land Rovers Quality standard accreditation, JLRQ.

The companys site in Aston, Birmingham had qualified for JLRQ before Sertecs takeover of the business last month and has been awarded for quality manufacture and operating standards.

The factory specialises in the manufacture of precision components, closures and Deep Drawn parts and now forms an integral part of the Sertec Group of companies.

General Manager David Footman was delighted to accept the accreditation, saying Everyone here has worked very hard to achieve the standards required by JLRQ, but we know we need to keep improving under the stringent quality targets set by Jaguar Land Rover.

The products manufactured at Aston represent new expertise and skill sets for Sertec, to complement their existing stampings and assembled component work for Jaguar Land Rover and other automotive manufacturers.