The group reported a pre-tax profit of €122.7 million on revenue of €900.9 million. Langley earned roughly 45% of its profits in EUR, 20% in USD, 20% in GBP and 15% in other currencies, although only a quarter of UK earnings were derived from the UK-based businesses, the majority coming from the UK subsidiaries of the European divisions.
Langley comments on what he sees as the likely effects of Brexit and Trump on the group and says that Manroland Sheetfed, acquired five years ago, had now returned the group’s initial investment in full. Manroland Sheetfed increased its revenues in 2016 to €314.8 million, over the previous year’s €291.9 million, an increase of 7.85%.
While Langley anticipates little or no negative effects of either Brexit and the Trump administration’s effects on Manroland Sheetfed’s future earnings, he is candid about the headwinds that the industry is facing, particularly the sharp decline of press sales in China. Orders on hand have declined to €52.8 million in the 2016 report from €79.5 million in 2015.
The German printing press builder is the group’s largest division in revenue and employee terms (with 1562 employees) and has around 40 subsidiaries around the world. Under Langley’s ownership, the company has installed around 500 Roland printing presses, maintained several thousands more and applied for 169 patents. In 2014, it announced the Roland 700 Evolution, which is said to be the world’s most technologically advanced printing press.
Piller, the German producer of power security systems, was the largest contributor to the group’s result. IT hosting and cloud data centers were Piller’s main driver in 2016, although healthcare, aircraft ground power and naval military systems also featured. Piller’s successes to date have been without any material levels of business from China and in 2016 the company secured a cornerstone project for the Shanghai Stock Exchange. Piller equipment is installed at most of the world’s leading exchanges.
In November, the group acquired the business and assets of Texas-based Active Power (NASDAQ: ACP), a producer of kinetic energy storage devices, and merged the business into its Piller division.
ARO, Langley’s French producer of welding technology for the automotive sector, also had another successful year on the back of a still buoyant sector. There was generally a dearth of investment in the cement, gypsum, steel and alumina sectors though and Claudius Peters, the group’s German plant machinery producer, although profitable, was much less so on a subdued level of business.
Other Businesses Division (OBD) performed satisfactorily overall and in line with expectations. OBD comprises of DruckChemie, the German print chemicals producer; Bradman Lake, the UK/US food packaging specialist (all based in the UK); Clarke Chapman, a specialist crane builder; Reader Cement Products, a blender and packer of cement products; Oakdale Homes, a regional house builder; and JND Technologies,
About Langley Holdings
Langley Holdings plc is a diverse, privately owned engineering and industrial group based in the UK with principal operating divisions located in Germany and France, and more than 80 subsidiaries worldwide. The group’s companies produce equipment ranging from electrical systems for data centers, machinery for cement and steel plants to food packaging lines, automotive welding equipment and printing presses. The group was founded in 1975 by the current chairman, Tony Langley, and presently employs around 4,300 people worldwide.