Offshore catering group Trinity International was hit by clients tightening their belts, affecting turnover and profits in its most recent financial year.
The Aberdeen-based firm saw turnover slide 33% to £8.4million, and pre-tax profits cut in half to £750,000 in the year to 31 August 2013.
The company said its figures were affected as a number of clients took catering and facilities contracts in house, although it did not lose out entirely as it still provides “key services to those same companies in other areas”.
The firm, majority owned and chaired by Stuart MacBride, said it has won over £1million in new contracts in the last week on the back of moves into new international markets such as medical care and management in Algeria, Egypt and Libya.
He also hit out at rival firms who have used tax law to avoid paying National Insurance contributions, the payment of which Mr MacBride insists is a “moral obligation”
He said the company’s policy of paying NI adds almost 14% to its costs and welcomed changes to close the offshore intermediaries tax loophole.
It has been estimated that UK Government moves to limit the ability of companies to employ staff through offshore intermediaries could cost North Sea firms up to £690million.
Mr MacBride said: “Our activities have for many years focused on the international market due to our unswerving commitment to making National Insurance contributions – something I believe is a moral obligation for every business.
Labour costs account for 66% of our contracting costs, 13.8% higher than multinational competitors who have previously declined to pay National Insurance contributions, which we have consistently said is completely unacceptable.
“I am gratified to see that the Contributions Agency agrees as it now seeks to close the loop on NI avoidance often practised by offshore intermediaries.
“Turnover fluctuations are natural in the industry – in the past year we have seen a number of contracts taken in-house by our clients in some regions however, we continue to provide key services to those same companies in other areas.”
According to the company’s 2013 accounts, filed at Companies House, its UK turnover fell by £2million to £3.8million in the year, while overseas trade fell by about the same amount to £4.7million.
Trinity has offices in Singapore, Norway, France, Algeria, Newfoundland and Trinidad in addition to Aberdeen.