Wellingborough-based racing-car maker RML Group has gone ‘into the red’ following a “very challenging” year, but the company is confident that recent contract wins will return it to profitability this year (
www.rmlmallock.co.uk).
The business was set up as Ray Mallock Atlantic Racing in 1979 and renamed RML Group in 1984. In the year to 31 October 2015, it recorded a pre-tax loss of £1.6 million, compared with a profit of £1.2 million a year earlier, while its revenues fell from £16.8 million to £7.4 million.
The board said the decline was due to reduced activity levels and a restructuring exercise that was carried out to reduce its cost base.
However, in July last year, RML was asked to design and then build and a high-performance electric racing car. It also won a multi-year contract to design and supply certain components for the Dunlop MSA British Touring Car Championship.
An RML spokesman said: “These successes, plus the significant increase in other prospects, reflect a greater emphasis on business development, with particular effort to broaden the scope of work undertaken. Various other projects are currently being discussed in the motor-sport, automotive and defence sectors.”