Staffordshire-based Doncasters (www.doncasters.com), which makes high-precision alloy components, remains optimistic about its prospects despite spiralling debt, accounting irregularities in its Chinese operations and the recent collapse of its planned sale.

The directors have acknowledged “the existence of material uncertainties, which may cast significant doubt on the group’s ability to continue as a going concern”, but they are confident that it has “sufficient headroom” in its banking facilities.

The weakening of sterling increased the group’s debt by more than £100 million, as its loans grew to £1.2 billion, and it had to restate its 2015 results after identifying “a number of accounting irregularities” in the results reported by its Chinese subsidiary.

The group’s 2016 results showed a 25% decline in its operational profitability (to £82.6 million) despite a 4% increase in sales (to £654.2 million), but it is optimistic about its operational performance, with an increasing order book, “generally favourable” markets and the positive impact of new products.

Chief executive David Smoot, who is also chief executive of parent company Dubai International Capital, said: “2016 was a year of positioning for growth through investment and product introduction.

The group saw a substantial increase in its order book and a new product pipelinethat is expected to lead to growth in sales and earnings, supported by encouraging market conditions.”

Doncasters was founded in the late 18th century, making it one of the country’s oldest manufacturers. It employs 5,000 people across the group, which has its headquarters in Burton-on-Trent and its R&D facility in Droitwich.