Turnover and profits fell at a metal parts manufacturer amid “very competitive conditions” in its market.

Bosses at HV Wooding, founded in 1967, said they were pleased with their results despite the fall, with “significant untapped potential for the company’s products in the UK”.

Turnover declined by 5% to £9.2 million and pre-tax profits slipped by 2% to £329,000.

More than 22 million UK households have electrical products made with metal pressings manufactured by the company, which is based on Range Road Industrial Estate, Hythe. It supplies castings for the renewable, medical, transport, energy, electrical and research sectors.

In its accounts for the year to the end of March, the company said the financial year began well, with pre-tax profits reaching £257,000 in the first six months of the year.

However, August was a “poor month with depressed sales and profit” as customers went on holiday and the rest of the year was “below par”.

In his report at Companies House, managing director Harry Wooding said: “This is due to a drop in repeat business from core customers but, at the same time, a lot of new business was being won.”

The firm, which employs about 100 people, has repaid £240,000 of a £1.1 million interest-free loan it received from the Expansion East Kent scheme run by Kent County Council, which lends cash from the government’s regional growth fund.

Mr Wooding said: “The funding has enabled the company to invest in further machinery such as the new laser machine, which will allow us to bring work back in-house and offer customers multiple processes ‘under one roof’ and to build our market share in new production process.”

UK sales, where it has the vast majority of its business, were down 8% to £7.8 million, although growing international sales made up some of the difference.

European sales grew 15% to £1.2 million, while revenues in the rest of the world grew 18% to £213,000.

Mr Wooding said a new organisational structure was helping it “react quickly to jobs with short lead time and deliver good quality parts on time at competitive prices whilst providing good customer service”.

He added: “The company is continuing to try to increase core repeatable sales and win more short-term projects in order to increase market share, improve profitability, and provide customers with the exceptional levels of service that they require and we can provide.”