Allam Marine/Allamhouse/SMC accounts

Improving picture boosts Allam Marine

An improving economic picture has contributed to a sales surge at the engineering business controlled by Hull City owner Assem Allam. Profits also rose at generator manufacturer Allam Marine, boosting Allamhouse Ltd, the ultimate parent of the entrepreneur's Premier League team.

Hull-headquartered Allam Marine makes diesel and gas generators that supply power in some of the world's harshest environments. It is run by Allam and his son Ehab.

In accounts published this morning, Allam Marine posted a 20 per cent increase in sales to £120.3m in the year to 31 December 2013. The turnover rise was said to be due to improving conditions in the Middle East and a feelgood factor in the eurozone. The directors expect similar growth for 2014.

However, gross profit margin decreased to 11.8 per cent from 13.9 per cent, caused by adverse exhange rates in the year. But strict control over overheads resulted in a slightly improved profit of £11.2m, the Queen's Award-winning business said.

During the year Allam Marine refinanced all its banking facilities with Lloyds Bank, including a £10m temporary bridging facility over 18 months to provide interim finance for group companies.

Allam Marine's performance and reduced losses at Hull City helped parent Allamhouse Ltd to return to profit. Allamhouse reported a profit of £2.4m for the year, up from a £2.2m loss in 2012, also buoyed by reduced losses from its stadium management company and profits from the group's property development companies.

Hull City were promoted to the Premier League on 4 May 2013 and maintained their place earlier this year. The 2013/14 season featured a first-ever appearance in an FA Cup Final, losing to Arsenal.

Increased revenue from the Premier League was expected to reverse the club's former losses, which were subsidised by other group companies, and enable the club to be self-financing.

In property development, profits for the year were lower due to remediation work, bank charges and bad debts arising in the year.

Although Allamhouse's stadium management division is making losses, the business was said to be looking at ways to streamline costs and create new income streams, including the promotion of the Allam British Squash Open at the arena.

With the promotion of the football club, and improving market conditions the Allams were said to be optimistic about the future.

During the year a £110,000 donation was made to the Labour Party and a £15,000 donation to the Conservative Middle East Association. A charitable donation of £25,000 was made to the Children's University. Other charitable donations of £26,080 were also made, making total donations for the year of approximately £176,000.

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