Robotics manufacturer Tharsus continues to invest as challenging year knocks profits

Despite difficult trading conditions the business invested in its core engineering and manufacturing capabilities

Northumberland robotics manufacturer Tharsus has continued to invest despite seeing revenue and profits fall in testing times.

Tharsus Group – the holding company of a group of engineering-led businesses including Tharsus and Universal Wolf – manufactures its products from three Blyth factories, employing more than 200 staff. While Tharsus provides a full product design, manufacture and aftermarket service to customers developing advanced machines and automation systems, Universal Wolf is a specialist provider of complex metal fabrication and engineered assemblies.

Tharsus also develops logistics automation products under its VersaTile platform. The business – a former Company of the Year at the North East Business Awards – worked with online grocer Ocado on its warehouse automation project for 10 years, during which time it manufactured thousands of robots to pick groceries for delivery. That contract came to an end in its 2023 financial year.

The group has now published accounts for its 2025 financial year in which it fell to a loss in a challenging year, with lower than anticipated revenue driven by delays and “non-progression of certain customer programmes”. Revenues fell from £24.5m to £18.6m, while Ebitda fell from profit of £800,000 to a loss of £1.5m.

The 2024 pre-tax profit of £400,000 was also converted to a loss of £1.99m. The overall loss for the year was £1.5m, down from profit of £371,975. Employee numbers also dropped slightly, from an average of 233 to 218.

A report within the accounts, by founder Brian Palmer highlighted its challenges as well as its investments.

It said: “During the year, management focus was directed toward stabilising the group following a period of reduced revenue, while ensuring that the underlying capabilities required to support future growth were retained. Actions were taken at subsidiary level to control costs, manage working capital and protect liquidity.

“Tharsus Limited experienced a challenging year, with lower than anticipated revenue driven by delays and non-progression of certain customer programmes. Restructuring activity was undertaken during the year to reduce costs and protect liquidity.

“Despite the difficult trading conditions, the business continued to invest in its core engineering and manufacturing capabilities and in the development of its VersaTile product platform.

“Universal Wolf Limited also experienced a softer trading year compared with the prior period, reflecting reduced demand from a number of established customers. The business maintained operational discipline and developed its core skills and capability, positioning it to support improved performance as customer programmes mature.”

Tharsus said the group continued to invest in the development of its VersaTile logistics automation platform – systems developed by the group under its own intellectual property – during the year.

It added: “A successful trial of the Grid system was completed during the year at a major grocer’s site, providing additional validation of the system’s performance in a chilled distribution environment. The business is in discussions with several major UK grocers, third party logistics providers and integrators about the commercial applications of VersaTile.”

Following publication of the accounts, the group told BusinessLive that Tharsus, Universal Wolf and VersaTile Automation has felt the impact of increased National Insurance costs, high interest rates and geopolitical uncertainty. These factors have made customers and their funders more cautious regarding innovation expenditure, resulting in the reduced total revenue and overall loss.

CEO and founder Mr Palmer added: “2025 was an important year of transition for Tharsus Group. While market conditions remained difficult in some areas, the business made clear progress in improving its commercial focus and positioning the Group for sustainable growth. We remain confident in the future opportunity for Tharsus Group, underpinned by the quality of our people, our engineering capability and the strength of the customer relationships we are building.

“I am grateful to all our Tharsus, Universal Wolf and VersaTile colleagues for their effort and resilience throughout 2025. Personally, I believe that there is no-one better placed to deal with the challenges of developing and commercialising new technology hardware in the UK than Tharsus Group.”