Leaner TARRC operation edges into gross profit

Brickendonbury, UK – The Tun Abdul Razak Research Centre (TARRC) has posted improved results for 2021 with sales at its Rubber Consultants operation up 17.6% year-on-year to £1.0 million (€1.17 million). 

Overall turnover at TARCC increased 18.1% year-on-year to £1.2 million, reported the Brickendonbury-based R&D centre of the Malaysian Rubber Board (MRB).

The bulk of sales, around £0.9 million, was generated in the UK, with mainland Europe representing the only other substantial market region for TARRC.

A gross profit around £0.1 million marked a turnaround from a gross loss of around £0.4 million in 2020, added TARRC's 2021 annual report, signed off 15 March.

However, largely due to 'administrative expenses' of around £1.3 millon, TARRC posted a loss of around £1.1 million for 2021 – compared to an equivalent prior-year loss of £1.7 million.

With the easing of UK Covid restrictions, TARRC last year carried out a "structural enhancement to further streamline the organisation," noted MRB.

A leaner workforce, now at 30, from 33 employees in 2020, is expected "to be more robust with new ideas of income generation" and support an expansion of technical activities. 

Measures taken in 2021 helped to "improve the efficiency of daily operations to reduce the deficit and work towards [TARRC] becoming a self-sustained operation."

Meanwhile, MRB – the principal source of funding for TARRC – has reclassified its financial contribution to the UK operation from a loan (not to be recalled until 2043) to a grant in the 2022 fiscal year.

Rubber Consultants is to remain the key source of sales, through its 'materials characterisation' and technical manufacturing services' units, added MRB.

The flagship unit has a global client base covering industries including automotive, aerospace, oil & gas, medical, pharma, packaging and construction.