The results come on the occasion of the fifth anniversary of Langley’s purchase of Manroland sheetfed. It said last year that it had transformed the business from a “lumbering leviathan” into an “efficient business”.
In the calendar year to 31 December 2016, the Manroland division turned over $314.8m (£253m), a 7.8% increase on the previous year’s figure ($291.9m). Orders on hand, however, fell by just more than a third (33.5%), from $79.5m to $52.8m. The division employs 1,562 employees out of Langley's total of 4,320, and makes up more than a third (35%) of its overall sales.
In his chairman’s review, Langley said: “February 2017 marks the fifth anniversary of our acquiring the sheetfed division of German printing press builder, Manroland AG, together with its worldwide network of more than 40 sales and service subsidiaries.
“During this period, the business has gone through a deep process of transformation, changing the company’s structure, processes and, most importantly, its culture. None of the former Manroland AG board were retained and more than half of the managing directors of the 40-plus sales and service subsidiaries have been replaced.
“The division has consistently stood on its own feet, generating sufficient cash resources to not only fund the reorganisation of the business and develop new products, but also to do this without any further financial injection, either from Langley or external sources.”
Langley added that around 500 Manroland presses had been installed around the world during the five-year period, while it had maintained an installed base of several thousand more and applied for 169 new patents.
He said a slowdown in the Chinese and Brazilian markets had had an effect on 2016 sales but other previously-dormant markets for presses around the world had “picked up much of the slack”, and there were solid sales in the US, Canada and Germany.
A strong year was initially predicted by Langley at its interims last August, with a solid Drupa order book said to be soon to take effect.
Manroland’s boost in turnover helped contribute to an overall sales increase for Langley of 3%, from $874.5m to $900.9m. Pre-tax profit rose by what Langley said was a record 15%, from $106.7m to $122.7m, and operating profit increased by 16%.
In November 2016, Langley completed its acquisition of US-based manufacturer Active Power, which was merged into its $225.8m-turnover Piller subsidiary.
Langley added that Brexit had yet to have much of an effect, as the fall in the value of sterling was good for UK exports and the majority of the groups’ UK profits arose from UK subsidiaries of German and French divisions, which compete entirely with other EU-based companies.
Surplus accommodation adjacent to Manroland’s Offenbach facility was last year used to house 80 Syrian refugees. Langley balloted the facilities’ 800 staff, of which 75% voted in favour to of the move.
Langley Holdings is a privately-owned engineering and industrial group based in the UK and operating in several industry sectors. Its principal operating divisions are in Germany and France and it has than 80 subsidiaries worldwide.
