An Aberdeen e-learning agency has estimated North Sea job losses hit 50,000 or more last year as it measured the impact on its business.
Atlas Knowledge Group, which pioneered the delivery of mandatory offshore training progammes via digital platforms, said revenues made on verifying North Sea personnel slumped 21% in its most recent financial year as a result of the job cuts, which it said affected 20,000 to 30,000 workers in the year to the end of September 2015. It added that lower volumes on North Sea sales continued after the year end period as the price of oil remained low.
But the company said it has successfully targeted international markets, developed new products and increased the number of training modules available on tablets.
New contracts in the Middle East, US, Latin America and Australasia saw its revenues from international markets grow to 44% of all its revenue, up from 28% the prior year, the firm said in its accounts.
Chairman Robert Morgan said: “These are outstanding results in the current climate. Our resilient performance, in the face of considerable market disruption and the lowest oil price for more than a decade, has been driven by a strengthened business model.
“The fall in oil price and reduced North Sea workforce did impact on domestic business lines with a 21% reduction in revenues from one of our key service lines. However, our drive towards new sectors and regions has paid off with international sales now accounting for 44% of our revenues.”
Turnover at the firm inched up above £7million compared to £6.97million the prior year. But it registered a £3.36million loss in the year, in line with the £3.6million loss made in 2014.
The company said it had contracted revenues of £18million over the next three to eight years. It added that its shareholders, who also act as the firm’s senior lenders, have agreed a two year extension on the firm’s £25.2million of loan notes to 2017. As a result the firm said its directors have a “reasonable expectation” that the group and has “adequate financial resources” to contine trading for the foreseeable future.
The company is controlled by private equity firm HG Capital which took a stake in Atlas in 2007.
Mr Morgan said: “Our increased product lines and diversified customer base means that one of our courses or services is now being accessed somewhere in the world every minute of every day.
“The development and roll-out of new products and technology platforms has allowed us to exceed customers’ expectations in addressing their learning requirements, wherever they are in the world, with easy-to-access solutions which ensure compliance and competence.
“In addition to a growing requirement for evidence-based technical qualifications we are seeing a continued appetite in the marketplace for smart, innovative and intuitive technologies fit for modern working in today’s business environment.”
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