Specialist Wirral manufacturer Heap & Partners reports ‘largest order book in our history’, despite suffering first losses in 18 years due to one-off issues with suppliers. Tony McDonough reports
Wirral manufacturer of specialist engineering equipment Heap & Partners is reporting its first losses in 18 years but has delivered an upbeat message in its latest annual accounts.
In the document posted on Companies House, Birkenhead-based H&P reported revenues of £8.3m for the 12 months to March 31, 2025. This is slightly down on the £8.8m reported in the previous year. Dividends of £158,820 were paid to shareholders.
However, the company also reported pre-tax losses just shy of £200,000. This compared to pre-tax profits of £201,000 in the previous year. It blamed one-off issues with its suppliers outside of its control for the losses.
Founded in 1866 by William Heap as an engineering supply company, H&P now exports to customers in around 85 countries across the world. Those customers are mainly in the energy, oil and gas, chemicals and life sciences sectors.
Operating out of Birkenhead, London and Teesside, the business develops, designs and manufactures everything from simple extension spindles, mounting kits, switchboxes, air distribution manifolds and an array of specialist valves.
Managing director and majority shareholder, David Millar, wrote in the annual report: “The financial year proved challenging for several reasons. What had been forecast as a profitable year ultimately resulted in the company’s first loss in 18 years.
“Although turnover declined by only £491,206, this fell significantly short of our expectations and forecasts.
“Based on anticipated higher revenues, we had committed to additional one-off R&D expenditure, engaged a senior contract design engineer and continue to invest heavily in product development.
“Mid-year the decision was taken to continue with this strategy as the long-term gain far outweighed the short-term loss.”
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During the year one supplier relocated to manufacturing operations from the UK to India, resulting in significant delays, and another postponed the placement of a large project order. These alone cost H&P £1m in lost revenue.
David added: “Despite these issues, the underlying demand for our products remains strong. Order intake increased by over £1m (up 12%) compared to the previous year – a robust performance that demonstrates continued market confidence.
“We closed the year with the largest order book in our history, positioning us well for a strong recovery in 2025/26.”