Testing outfit Exova cautions over ‘modest’ growth

Edinburgh-based Exova has about 200 staff in Scotland. Picture: Contributed
Edinburgh-based Exova has about 200 staff in Scotland. Picture: Contributed
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Exova, the Edinburgh-based materials testing specialist that recently agreed to a £620 million takeover, today said its growth this year will be “more modest” than that seen in 2016.

The group, which employs more than 4,200 people around the world, said total revenues during the four months to the end of April edged up 2 per cent, with a string of recent acquisitions helping to offset a decline in organic growth.

• READ MORE: Edinburgh testing group Exova agrees to £620m takeover

In a trading update, Exova told investors that conditions in the oil and gas market remained “challenging”, but it enjoyed “strong” growth in the aerospace segment and its transportation business had performed better than its board expected.

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Exova has about 200 staff in Scotland and last month agreed to a takeover approach from Dutch rival Element Materials Technology. Shareholders are due to vote on the deal on 9 June.

Chief executive Ian El-Mokadem said today: “The group has generally performed as expected in the first four months of 2017.

“We continue to generate organic growth outside of our oil, gas and industrials sector, albeit to more modest levels than in 2016 as we expected.”

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He added: “We continue to make good progress with acquisitions, with an encouraging pipeline which should continue to contribute to overall revenue growth.”

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