The Group

The company is privately owned and the shares in the trading companies are held by 125 individual investors. The investors originally invested in 2015 and again in 2016 through an approved Enterprise Investment Scheme (EIS). The EIS investment allowed the purchase of FGP Systems Limited and via a second investment vehicle, Heartland Engineering Limited, also acquired Ramp Surface Coating Limited (Ramp).

Heartland was subsequently acquired by Fundamental in 2020 allowing the formation of a single entity that holds the shares of the trading companies. The shareholders are represented on the board of Fundamental by two of the shareholders who as well as providing the necessary governance of the holding company, oversee the well being of the trading companies and are also responsible for maintaining investor relationships.

Fundamental Engineering Limited

FGP Systems FGP Lufton RSC

The Vision

FGP recognized as the supplier of choice for precision engineering and coating services to the Aerospace industry.


The Mission

  • Ensuring best in class quality and service
  • Efficiently operating from two sites we are proud to show to customers, producing market leading financial returns
  • Delivering a wider range of products and services than competitors
  • Developing an enviable list of key customers
  • Commitment to rapid turn around times
  • Reputation enhanced through accreditations including Airbus

Where Are We Now

  • Financial Performance
    • FGP Group Unaudited EBITDA was £3.8m for FY20
    • FGP Group Over the past three years the business has developed financial performance through process improvements and also maximising the benefits from investment
    • FGP Group Gross Margin % demonstrates the effectiveness of the operational performance which delivers c.45% returns
    • FGP Group It operates with a lean central structure which maximises operating profit performance at c.14%
  • People
    • FGP Group FGP Group has 210 personnel with 155 operating in Production
    • FGP Group The business has implemented programmes to improve leadership and effectiveness which should improve the business at managerial levels
    • FGP Group A training academy has been invested in for apprentices which is very successful in developing future FGP engineering talent
    • FGP Group ROATP Comprehensive Apprentice training Provider
  • Investment
    • FGP Group A programme of increased investment has been implemented over the last two years which has helped to elevate financial performance
    • FGP Group This is at a higher level than many of FGPs competitors and has helped to set the business apart from the rest of the sector
    • FGP Group Further investment will be made to enable FGP to continue to operate at the forefront
  • Quality & Reputation
    • FGP Group The business has continued to build its reputation for quality and has invested in high spec 5 axis machines to deliver complex products for customers
    • FGP Group This allows the business to carry a price premium against other competitors which boosts performance
  • Challenges
    • FGP Group Business is still overweight with regard to its reliance on Honeywell and needs to be able to drive additional new business from major customers
    • FGP Group Has developed a successful business in RSC with plans to redevelop existing space
    • FGP Group Business has developed competitive advantage through investment and this will continue to further differentiate itself

Markers of Potential Future Value

Ideal vision of the structure and performance of FGP to maximise shareholder value…

  • Business Integration
    Further integration of the businesses to provide a greater breadth of processes to customers gaining increasing share of wallet. FGP Group to benefit from the integration in terms of operational effectiveness.
  • Financial Performance
    Establish position as UK’s leading specialist manufacturing business for the Aerospace industry. Not necessarily the largest business, but delivering market leading margins based on operational excellence.
  • Reputation with Customers
    Continue to enhance reputation with industry leading levels of customer service. Focus on process efficiency to reduce delivery times and fast track capabilities.
  • Position Vs Competitors
    Continued investment to enable FGP Group to outclass competitors and justifying price premium. Already one of a limited set of specialist manufacturers, FGP would seek to actively target new customers with alternative sales strategy.
  • The Second Story
    Positioning FGP as an extremely strong and high performing business; an Aerospace manufacturing centre of excellence. A new investor gains a substantial platform to expand into adjacent markets and fully exploit new products and services.
  • Accreditations
    Enhance reputation and compete in broader markets through acquisition of an Airbus licence. In addition, could establish alternative high value services (eg R&O) with EASA145 accreditation and attract further business with SC2.
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