Bosses at facilities management firm Richard Irvin Energy Solutions have said the business has “turned a corner” after the company reported a £3million loss in 2013.
Willie MacLean, chief executive, said the losses and a 14% decline in sales to £39million was a “one-off” problem since a new management team was put in place.
He confirmed the company is on track to return to profit in 2014, having reported “significant” new business wins worth over £15million. The firm is also aiming to expand the business outside of its north-east “heartland”.
The company will open a new office in Dundee next month as well as targeting expansion in central Scotland and the north of England. Recent contract wins include a £3million deal to provide services to East Lothian Council.
Mr MacLean said: “There is no doubt that our financial performance in 2013 was very disappointing – but we knew it was coming. It was a one off. However, we have worked hard to stabilise the business and will recover fully this year.”
Mr MacLean took over as chief executive of the business last year and has been joined by new chairman, Bob Brannan.
He said the company “suffered” as a result of the recession since 2008 which hit construction generally, particularly in the public sector.
Although the firm was insulated by its work on contracts for many oil and gas clients in the north-east, Mr MacLean noted that competition in the market increased during the recent lean years.
“What we found was our competitors, who before weren’t really interested in coming to Aberdeen, started coming up the road – it made it very competitive.”
He said that the firm’s fortunes have also changed as “stored up” construction projects have started to come back on line.
He said the company has refocused on three core business areas – facilities management, mechanical and electrical engineering and oil & gas services.
“Richard Irvin of old was an inward looking organisation that rested on its laurels a little bit – and we paid for that in the years running up to 2013. The result for this year proved that,” he said.
He said that the firm’s outlook was now “very positive as we continue to win new business, invest for the future and recruit new talent at all levels across the business”.
The Aberdeen firm said the new office in Dundee will eventually employ up to 45 people and add to its existing network of sites across Scotland including Aberdeen, Elgin, Inverness, Glasgow and Edinburgh.
“There’s a lot of great things happening and a lot of money going to be spent in Dundee. Like Aberdeen it is a city that you have to be in it to win it,” he said.
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