Mechanical engineering firm EnerMech, of Aberdeen, said yesterday that it expected annual profits to hit £10million this year and rise to £20million in 2012.
The firm’s global workforce, already more than 1,000 strong, is predicted to swell to at least 1,400 over the next 12 months.
EnerMech said continued investment in the fledgling business had helped to create 580 jobs this year alone, including 340 in the UK.
The firm added that the doubling of earnings before interest, tax, depreciation and amortisation (ebitda) should come as turnover rockets to £142million next year, from £103million in 2011.
EnerMech’s forecasts came as it also announced a bigger funding agreement, potentially worth an extra £20million, from Lloyds Banking Group to support additional investment in equipment and facilities.
Managing director Doug Duguid said: “We have invested more than £60million in facilities, equipment and five acquisitions since mid-2008.”
Recent investment is expected to deliver £10million of ebitda this year.
It includes acquiring and refurbishing the firm’s Aberdeen headquarters and establishing an international footprint, with 17 additional bases, across the eastern hemisphere.
Mr Duguid said: “All of this is now beginning to deliver significant growth and profitability.”
The new deal with Lloyds extends a revolving £20million credit facility, agreed by the bank in April last year, to £30million.
EnerMech has an option to increase this by a further £10million, depending on future profits.
If the option is fully taken up, it would bring the value of the bank’s support to £44milliion.
Mr Duguid said: “The fact that we have achieved our profitability targets this year demonstrates the potential going forward and paved the way for this additional lending facility.”
EnerMech’s projections for 2011 and 2012 earnings come after the firm, founded in April 2008, reported losses totalling more than £13.7million during the previous two years.
The business, which has just filed its 2009 accounts at Companies House, said the losses included £5.1million preference-share interest and goodwill amortisation, and a further £3million of one-off costs.
Mr Duguid added: “It means that losses at ebitda level for the past two years were £5.9million, which is entirely reasonable given the accelerated rate of growth and other factors, including deal and integration costs associated withfive strategic acquisitions and registering and establishing new companies in nine overseas territories.
“It has taken time to become profitable but it is encouraging to see that since early 2011 the business is now delivering sustainable profitability, consistently in excess of £1million ebitda a month.”
EnerMech said growth capital investor Lime Rock Partners was willing to help finance the business, while potential acquisitions being evaluated at the moment could take the firm “to a whole new level”.
Scottish engineer Weir Group said yesterday it had appointed Alan Ferguson to its board as a non-executive director. Mr Ferguson was previously chief financial officer at platinum miner Lonmin and is currently chairman of the audit committees of metal refiner Johnson Matthey.