Wagon still rolls

Wagon, the UK-based automotive engineering group, said it is in good shape, despite the demise of MG Rover.

The company, which supplies body structures and components to many of the world’s major car companies, said improved operational efficiencies would help offset the impact of Rover’s collapse on its profits.

Although the loss of MG Rover’s business and some work on the Renault Espace would result in lower sales overall, Wagon pointed to a record intake of new orders as evidence that its ongoing position was sound.

The company’s turnover on continuing operations fell 7.5 per cent to £451m in the year ending March. Profits before tax and exceptional items rose by 18 per cent to £19.4m, but a series of one-off costs led to an overall loss of £1.5m.

Order intake reached £83m last year compared to £67m previously with the potential for substantial further growth, according to the company.