Aberdeen-based workplace fit-out specialist Space Solutions has avoided a North Sea-related shortfall in its latest results by growing business in the central belt.
Managing director Steve Judge said the Edinburgh and Glasgow markets were full of promise as Space, which grew out of a commercial architectural practice in 1997, adapts to life beyond its traditional oil and gas industry market.
But business is far from dead in the Granite City, where the firm has recently been involved in the relocation of service company PD&MS Energy into the new Ardent House office development in the North Dee Business Quarter.
And while the office market in Europe’s energy capital is not as strong as a few years ago, Space is at the heart of most new developments.
Mr Judge said: “The vast majority of our public sector and commercial activity in the north-east has been centred around optimising the use of space and thereby reducing the cost of occupancy – that’s obviously attractive to organisations as relative cost per person is reduced.”
The 2015/16 results show Space is holding a steady course financially after seeking out opportunities in Scotland’s two largest cities.
Pre-tax profits for the 12 months to June 30 came in at £250,000, compared with £248,000 a year ago, with revenue flat at £36million.
The company has just appointed its first director for strategic growth, Derek Binnie, previously central belt director, in order to build on “significant” investment in bolstering and diversifying the business during the last financial year.
Space is also eyeing two acquisition targets in the central belt, with at least one of them expected to come off during the final quarter of 2016.
Mr Judge said a potential bolt-on being lined up would add “front-end design capability”, allowing the firm to broaden its service offering.
Space, which as of the end of last month employed 221 people across its main offices in Aberdeen, Edinburgh, Glasgow, Livingston and Dundee, has seen central belt revenue soar over the past couple of years.
While the company operates predominantly in Scotland, bosses are also looking at opportunities to grow the business across the UK in 2017.
“Through working with an increasing number of national and international corporations and partners we are getting into the frame for more projects and developments outside of Scotland,” Mr Judge said, highlighting the Manchester area in particular as full of potential just now.
He added: “As the hatches have been battened down in the north-east market, we have had to adapt our own business and reflect on where opportunities are going to come from.
“While we are currently a small fish in a very large pond in Edinburgh and Glasgow, we don’t intend for it to remain that way.”
Space specialises in commercial architecture, workspace planning, interior design, refurbishments and commercial relocations.
Mr Judge is the company’s biggest shareholder, with a 26% stake.
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