UK Edition
Ejector seat Martin-Baker cuts dividend after shipping delays hold back sales
Dividends at aircraft ejection seat maker Martin-Baker have dived, with performance of the family-run business failing to live up to forecasts after delays held back financial results.
The company, which makes the seats that blast pilots out of stricken fighter jets, paid its owners £32m, £8m down on last year’s figure which came after a bumper year, according to accounts filed at Companies House.
In the year to the end of March, revenues were £216.3m, £6.5m lower than last time around, a decline blamed problems shipping products which pushed back sales.
A strong order book last year had meant directors were expecting sales at a similar level, but admitted the forecast was “slightly optimistic”.
The expected the current delays, to be resolved during the current financial year, but cautioned there “remains a risk that the backlog will not have completely cleared by that point”.
Pre-tax profit at Martin-Baker fell 20pc to £48m, with higher administration costs contributing to the decline.
The accounts also noted that the company is being prosecuted by the Health and Safety Executive (HSE) after a Red Arrows pilot was killed when his Martin-Baker ejector seat fired during pre-flight checks.
Iraq War veteran Flight Lieutenant died after the accident on the ground at RAF Scampton, when the seat delivered by Martin-Baker in 1976 and which had been maintained by the RAF activated.
The HSE alleges the company had a duty to warn about risks in maintenance procedures of the seat, but Martin-Baker said it had been advised that it has a “realistic prospect” of winning the case, and intends to fight it.
Based in Higher Denham, near Uxbridge, the business is still jointly managed by John and James Martin, the twin sons of the late founder Sir James Martin.
Originally set up as aeroplane manufacturer Martin’s Aircraft Works in 1929, the company moved into ejection seats in 1942 after Captain Valentine Baker was killed testing a company planes. The death of his friend drove Sir James to investigate pilot safety, eventually deciding the best way to escape damaged aircraft was an explosive charge that propelled pilots still in their seats away from the aircraft, then parachuting to the ground.
Since 1946, the company has produced more than 75,000 ejection seats in use with 93 airforces that have saved 7,557 pilots, according to the counter on the company’s website which tracks ejections.
Customers include the RAF and Royal Navy, as American forces, and aircraft fitted with Martin Baker’s ejection seats include the F-35 Joint Strike Fighter, the RAF’s Typhoon and US Navy’s F-14 Tomcat.
Killinchy Aerospace Holdings, which owns Martin-Baker, had revenues down 1.8pc at £237m over the same financial period, and pre-tax profits 6.7pc lower at £66.9m. It paid a a £51.1m dividend up from £41.4m last time round.