Profits at Ashtead Technology jumped by almost 40% after the Aberdeenshire-based subsea machinery supplier invested a record amount in rental equipment.
The company pumped £10.1million into its capital expenditure programme in the year to April 30, 2014,up from £9million in the previous 12 months and the highest tally since the business was founded 29 years ago.
Operating profits rose to £13.6million, from £9.7million previously, on the back of a 23% increase in turnover to £27.4million.
Pre-tax profits soared to £4.7million, from £168,000, thanks to strong top-line growth and lower depreciation and finance costs, according to accounts filed at Companies House for Amazon Group, the holding company for Westhill-based Ashtead.
Chief executive Allan Pirie said the company was on course to hit its targets to grow revenue and profits during the current financial year.
He said: “Despite the drop in oil price, the fundamentals in subsea remain strong and we remain confident about the short to mid-term future, both for the industry and our company.
“Our global operations mean that our exposure is spread across all oil and gas regions and, while there may be a slowdown in the North Sea, our international outlook is more positive.
“Equally, our service covers a variety of operations in the lifecycle of oil and gas projects from survey to inspection, repair and maintenance.”
He added: “It is our view that now is not the time to retrench but to be bold, to continue to invest in our business and demonstrate our cost-efficiency and add value to our customers.
“Against this backdrop, we are well-positioned to meet our growth targets for 2015.”
He said he had no plans to make staff redundant following the fall in oil prices. On the contrary, he said the firm was looking to add to its current headcount of 95 people.
The accounts mark the first full year since Ashtead sold its North American instrumentation business to Pine Environmental Services for an undisclosed sum.
The deal left the Scottish company with bases in Houston, London and Singapore, and agents in Australia, Norway and the United Arab Emirates.
Ashtead was formed in 1985, when equipment rental firm Ashtead Group bought inspection equipment specialist SubSpek.
London-based private-equity firm Phoenix Equity Partners backed a £95.6million management buyout in June 2008.
Earlier this month, Phoenix financed a management buyout at holiday park operator Bridge Leisure which included the takeover of the Silver Sands site near Lossiemouth.
Other companies in which Phoenix holds investments include Palletways, Porthaven Care Homes and Great Yarmouth-based flow control firm Signum Technology.
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