Balmoral Group Holdings is expecting profits to bounce back in the current financial year, the company said yesterday.
Pre-tax profits tumbled to £2.17million in the year to the end of March, against £14.25million in the previous 12 months. Turnover also took a hit, falling to £50.81million, against £73.39million previously.
Chairman and managing director Jim Milne said the fall in turnover and profitability was caused by a reduction in market demand for drill riser buoyancy, plus delays in several projects for Balmoral Offshore Engineering.
Aberdeen-based BGH employs about 400 people and has been providing solutions to the energy, engineering, marine, building, polymer engineering and processing sectors since 1980.
The company’s operations include Balmoral Offshore Engineering, Balmoral Tanks and Balmoral Park.
Mr Milne said the drop in turnover and profitability was expected and BGH remained very firmly focused on growth.
He added: “2011-12 was a transitional year for the group across all its key operating businesses, where we have made significant investment to strengthen our respective market positioning. We are already seeing the benefit of this with a substantial increase in order backlog within our manufacturing businesses for 2013.
“With increasing levels of global subsea activity taking place and a sizeable upturn expected in the deep-water market, we are confident that Balmoral Offshore Engineering will return to significant growth over the next 12 months and beyond.
“With our new Brazilian manufacturing facility expected to come online in 2013, we are well positioned to support the large growth and continued push for localisation in this market.
“Export orders for Balmoral Tanks are helping this division remain on track and we have been particularly active in the Middle Eastern and African markets. I fully expect Balmoral Tanks to continue this trajectory going forward.”
Balmoral Business Park, the company’s property development project on the south side of Aberdeen, is reported to be well underway with infrastructure practically complete.
Mr Milne said: “We expect to announce our first tenant very soon.”
Balmoral Offshore Engineering launched the Balmoral Skills Academy in Aberdeen last June.
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