Mechanical engineering services company, EnerMech Ltd, doubled turnover in 2011 to £102 million, up from £50.6 million in 2010, according to its latest group accounts.
The Aberdeen-based group delivered an £8.4 million profit (EBITDA*) and forecast 2012 profits would almost double to £14 million on expected turnover of £140 million.
A recently agreed £25 million funding package from private equity backers, Lime Rock Partners, will underpin five strategic acquisitions in 2013, in addition to the £3 million acquisition of South African business Water Weights International last month. (December 2012)
Target companies are located in Australia, Africa and the USA and will enhance EnerMech’s global reputation as a major service provider to the oil, gas and power industries.
The latest accounts filed at Companies House for the group’s UK subsidiary, showed a marked reduction in pre-tax losses, which were down from £5.28 million in 2010 to £1.56 million in 2011.
The Director’s Report said every business line had achieved significant growth in 2011 with long term contract wins helping Equipment Rental to grow by 32% and Cranes by more than 50%. Organic growth in Hydraulics and Training had delivered an increase in sales of 27% and 34% respectively, while Valves had added £5.6 million revenue and the newly established Process, Pipelines and Umbilicals business line contributed £26 million global sales in its first full year of operations.
EnerMech 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.
Mr Duguid said: “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 £2.6 million of pre-tax operating profits, the first year the group has delivered a positive result and after only three full years of trading.
“We will continue to invest in capital assets and high calibre management across the global business to support future expansion. Further acquisition targets have been identified for 2013 and once complete will take the business to a new level in terms of geographic reach and strategic ability to deliver our services and technologies.”
In a little over four years since it was formed by Mr Duguid and finance director Michael Buchan, EnerMech has developed in to an Aberdeen-headquartered business with 1400 staff located in 20 international locations.