EnerMech Group said yesterday it was reaping the rewards of significant investment in its early years, with 2012 profits likely to be nearly double those of the year before.
Earnings before interest, tax, depreciation and amortisation expenses are expected to hit £14million, up from £8.4million in 2011.
Last year’s anticipated turnover of £140million is up from £102million in 2011, which itself was more than double the £50.6million achieved in 2010.
Results just signed off show Aberdeen-based EnerMech – launched just over four years ago – made its first profits in 2011 after losses totalling more than £13.7million in the previous two years. Managing director Doug Duguid said the strong financial performance was the result of significant investments in the company’s formative years to build an international infrastructure, which was pivotal in winning new client work.
He added: “Higher activity levels drove increased profitability, with gross profit margins increasing to 22.4% over the 2010 equivalent of 14.3%.
“This helped us achieve a significant milestone in returning £2.6million of pre-tax operating profits, the first year the group has delivered a positive result and after only three full years of trading.”
EnerMech specialises in the supply, maintenance and engineering of cranes, lifting, valves/hydraulic equipment and equipment rental. The company also provides training and manpower to the energy industry.
Since it was formed by Mr Duguid and finance director Michael Buchan in 2008, it has developed into a business with around 1,400 staff in 20 international locations.
In addition to Aberdeen, it has operations in Great Yarmouth, Norway, Azerbaijan, Kazakhstan, Dubai, Abu Dhabi, Qatar, Ras al-Khaimah, Singapore, the US, Indonesia, China, Ghana, South Africa and Perth, Australia.
EnerMech ended 2012 by announcing its £3million buyout of South African business Water Weights International and a recently-agreed £25million funding package from private-equity backer Lime Rock Partners will underpin another five acquisitions in 2013.
The group is targeting companies in Australia, Africa and America as it looks to further grow its reputation as a major service provider to the oil, gas and power industries.
Separate figures filed at Companies House for the group’s UK subsidiary, EnerMech Limited, show a marked reduction in pre-tax losses in 2011 to £1.57million, from £5.28million in 2010.
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