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Dyson reports 45 per cent profit growth to £2.5bn

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Written by: Admin | Posted 28 March 2017 9:15

Dyson reports 45 per cent profit growth to £2.5bn

West consumer goods giant Dyson has reported a massive increase in profits and turnover – on the back of astonishing international growth.

Wiltshire-based Dyson saw turnover in 2016 grow by 45 per cent to £2.5 billion. Its pre-tax profits also enjoyed a stellar year, growing  by 41 per cent to £631 million.

The private company, which is owned by founder Sir James Dyson, is based in Malmesbury and earlier this year revealed it has bought the 517-acre former military airfield at nearby Hullavington to expand its research operations.

Late in 2016 it also opened a software development laboratory in Bristol, which will focus on its App.

Dyson may have made its name as a vacuum company, but it is thriving in numerous product categories now.

The Dyson Supersonic hairdryer was – in the run up to Christmas – the second most sold item online at John Lewis (UK), behind only chocolate coins.

Its air purifiers are thriving in countries such as China, where pollution is rife.

One of the most exciting developments in the pipeline in 2017 is it opening up to 25 shops – known as Dyson Demo stores – across the globe, including a flagship shop on New York’s Fifth Avenue.

Sir James, who was a prominent campaigner in favour of Britain leaving the European Union, hailed the results.

He said, “Software is propelling hardware companies at a faster rate than software is propelling software companies. The power comes from the two working together. That is precisely what we are developing, in Dyson’s new technology campuses in Malmesbury and Hullavington and at our centre in Singapore.”

Max Conze, chief executive, said: “2016 was one of our best years yet, driven by new technology and international growth. Our future is best understood by looking at the new Dyson Demo stores. They get people hands-on with Dyson machines to understand the intelligent technology inside. “We will have twenty five flagship Demo stores by the end of the year including Fifth Avenue in New York.”

Other highlights in 2016 included the Dyson V8 cord-free becoming the fastest-selling Dyson vacuum cleaner ever launched and 244 per cent  growth in China.

Read more: Aerospace sector has brought £2bn to economy so far this year 

It is Dyson’s global success that will be of most interest to campaigners who insist Britain will enjoy a brighter economic future outside the European Union.

The US remains Dyson’s largest market and in 2016 it was buoyed by the launch of the Dyson Supersonic hair dryer which previewed during New York Fashion Week, with 65 per cent of people buying it new to Dyson products.

To support the growing business, in 2017 Dyson US will move into a new, larger space in Chicago’s vibrant West Loop neighborhood.

The company is in its third year of operating in China and 2016 growth remained strong at 244 per cent. Success has been driven by adoption of the Dyson cord-free cleaning format (343 per cent), which is seeing Chinese consumers abandon conventional cleaning methods.

Dyson plans to open flagship stores in major cities across India in 2017, as it seeks to open new frontiers, with India’s growing middle-class being targeted.

Meanwhile Dyson extended its number one position in cordless vacuums in Europe and leads the market in all major EU countries.

Last year Dyson completed its £250 million technology campus at Malmesbury, but it is already out-growing it, with attention turning to its development at Hullavington.

The acquisition will increase its UK footprint ten-fold.

One of the biggest challenges to sustain its growth has been recruiting suitably talented engineers.

To tackle the shortage the Dyson Institute of Engineering and Technology will open in September, welcoming its first undergraduates.

Drawing on Dyson’s existing university collaborations and in-house engineering expertise, it will offer aspiring engineering undergraduates a degree education while working with world-class practitioners on real products. In return the undergraduates will come away from higher education debt-free, having earned a salary throughout. They will enter the profession as fully fledged, battle-hardened engineers who will have learned alongside world experts.

Dyson now employs 3,500 engineers and scientists around the world and invests £7 million a week in product development.

It has more than tripled headcount at its UK headquarters in the past four years as it focuses on developing intellectual property to underpin future technology. It is focusing on intelligent machines and seeking hundreds of software engineers. Dyson is the UK’s largest investor in robotics and the company is realising ambitious plans to develop new technologies such as solid state battery cells, vision systems, machine learning, and artificial intelligence.

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