North-east oilfield service business Stats Group has become the first firm in Scotland to benefit from a £2.5billion pot for small and medium enterprises (SMEs).
The Business Growth Fund (BGF) said yesterday it had provided £7.8million of funding to Kintore-based Stats, its first investment in the oil and gas industry.
Stats, which employs 130 people and specialises in pipeline integrity, said the money would be used to expand its workforce and step up its work in international markets.
The company, set up by chief executive Peter Duguid and his sister, Lorraine Porter, in 1998, turned over £14million last year. It has targeted £25million turnover in 2012 and said much of the growth would come from projects in the Middle East.
Mr Duguid said Stats had reached a critical juncture in its development, adding: “After weathering some tough economic conditions we have come out the other end in great shape and with more growth opportunities than we could afford to pursue.
“To take the business to the next level and capitalise on these opportunities we realised that we needed an extra boost. That boost has come in the form of an equity investment and the active support of BGF, whose experience and contacts will help us to make the transition from a successful UK firm to an international business of scale operating across multiple regions.”
Stats was introduced to BGF through one of its shareholders, Lloyds Banking Group.
Simon Munro, BGF’s regional director in Scotland, said: “I am hugely impressed by what Peter Duguid and his management team have achieved to date and have no doubt that there is much more to come. As a technically differentiated business offering unique products to a large and growing international market, Stats is a great example of the type of business in which BGF wants to invest.
“We are seeing a strong pipeline of investment opportunities across all sectors in Scotland, a clear indication that businesses here are recognising the value that a supportive equity investor can bring to the table.”
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