Aberdeen's EnerMech gets £100m revenue lift

Mechanical and electrical services specialist EnerMech has enjoyed a revenue lift of almost £100 million thanks to its global growth.

Globally, EnerMech employs about 3,500 staff across 40 locations. Picture: Simon Price

The Aberdeen-headquartered firm has posted full-year group turnover of £361.4m, up from £263.9m the previous year, while underlying profits (earnings before interest, tax, depreciation and amortisation, or Ebitda) increased by £19.3m to £43.6m.

The latest set of accounts, for the year to December 2017, show EnerMech’s UK business continued to weather the North Sea malaise, despite a drop in turnover to £116m from £128m in 2016.

In the UK, where the company employs some 1,000 staff, underlying earnings came in at £9.9m, against £15m the previous year.

Globally, EnerMech employs about 3,500 staff across 40 locations, serving the oil and gas, liquefied natural gas (LNG), renewables, defence, power, infrastructure and petrochemicals sectors.

Some £45m of its revenue growth came from the acquisition of electrical and instrumentation specialist EPS Group Australia in early 2017.

Chief executive Doug Duguid forecast that global revenues in 2018 would increase to £430m with Ebitda in the region of £59m, and said the UK business would also experience growth on the back of increased investment in the region.

He said: “Our global strategy of diversification, both in terms of the services we provide and the markets we are competing in, is proving successful and this is strongly demonstrated by our financial results, however we are also starting to see a return to growth in our traditional oil and gas market.

“In five of our seven operating regions, we experienced significant growth, particularly in Australia.”