Wellingborough racing car maker RML Group has slipped into the red following what it has described as a "very challenging, transitional" year, newly filed results have revealed. However, the business remains buoyant and is confident that recent contract wins will return it to profitability in 2016.
RML Group was established by Ray Mallock as Ray Mallock Atlantic Racing in 1979. It was renamed RML Group in 1984.
In the year to 31 October 2015, the business fell to a pre-tax loss of £1.6m compared to a profit of £1.2m a year earlier. Revenues also declined to £7.4m from £16.8m in 2014.
A statement signed off by the board said the slump was down to reduced activity levels during the period and a restructure which was carried out to reduce the group's cost base.
However, it added that RML's decision to diversify into high performance automotive and high performance electric vehicles led to two "significant" contracts wins in the second half of the year.
In July 2015, RML was appointed by a manufacturer to design, build and supply a high performance electric track car as part of an 18 month project. It also won a multi-year brief to design and supply specified components for the MSA British Touring Car Championships.
RML said: "These successes, and the significant increase in other prospects, reflect a greater emphasis upon business development, with particular effort to broaden the scope of work undertaken.
"A variety of other projects are currently being discussed in the motorsport, automotive and defence sectors."