Cosalt said yesterday it was ready for a fresh start after clearing most of its debts and recruiting a new senior management team.
The Grimsby-based company said it had appointed a new chief executive and chief finance officer and that the sale of its marine arm last week for £31million would help reduce its debts to £7million by the end of this month.
But it still posted operating losses of £1.8million yesterday. Chairman David Ross said: “The sale of the marine division has enabled us to stabilise the business, reduce borrowings and re-focus the business on providing services to offshore industries.
“Trading has been challenging, but the disposal of the marine division will enable us to make a fresh start.”
Trevor Sands will take over as chief executive from Mark Leijman, who agreed to step down following the sale of the marine business, on October 27.
Mr Sands, previously chief executive of engineering firm Emerson Electric, will be joined by Dolores Douglas – previously finance director of food and drink manufacturer Big Thoughts – as chief finance officer.
The previous chief finance officer Mike Reynolds left in June and director Neil Carrick will leave at the end of this month.
Cosalt said yesterday that turnover in the six months to the end of June, excluding the marine division, was £20.9million, up from £20.1million.
But the group posted operating losses, before special items, of £1.8million, against profits of £100,000 in the same period in 2010.
Special items mounted to £6.7million because of a write-down in the value of property, impairment of goodwill, restructuring, amortisation, refinancing and litigation costs.
Of its turnover, £16.4million was generated by the offshore division, which employs 250 people in Aberdeen, up from £14.6million in the same period last year.
Although business in the North Sea offshore division was up, it slowed for the unit in Norway and a strong order book suffered from raw material shortages, Cosalt said.
The division is also involved in a legal dispute with former employees Calum and Stuart Melville and a London-based company called Meapac.