EnerMech, the Aberdeen-based mechanical and electrical engineering outfit, has reported a steady rise in annual revenues and is forecasting a surge this year as it continues to diversify and expand its footprint.
New accounts show that 2016 revenues rose by almost £10 million to £263.7m compared with a year earlier, with the group forecasting that 2017 turnover will increase by nearly £100m to some £360m.
Underlying profits – or Ebitda – rose by £4.4m to £24.8m in the same period and are expected to increase further to around £42m in the new year.
Figures lodged at Companies House show EnerMech’s UK division enjoyed similar success with revenues of £128.3m, up from £123.7m the previous year, while Ebitda more than doubled to £14.4m.
Globally, the group employs about 3,000 staff across 40 locations and has evolved into one of the world’s leading integrated engineering contractors, continuing to serve the energy sector while expanding its service offering into new sectors, including renewables, defence, power and petrochemicals.
The acquisition at the start of the year of electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US, expanded the Scottish firm’s capability beyond its original mechanical focus and has also provided EnerMech with access to large-scale infrastructure projects.
EnerMech chief executive Doug Duguid said: “We remain focused on increasing our presence in international markets, strengthening our reputation in our core energy sectors, while building on the significant inroads we have made into other important markets such as infrastructure and utilities.
“Prudent cost savings, a strategic expansion into new sectors and carefully targeted acquisitions underpin what is an encouraging set of financial results.”
He added: “EnerMech is constantly evolving and our approach to providing truly integrated engineering services means we can remain agile and responsive to client requirements, which puts us in a strong position to maximise growth potential in the years ahead.”
The group said it was enjoying “significant” growth in its US business, buoyed by success on LNG pre-commissioning contracts and in the petrochemicals sector. It expects 2017 revenue in the Americas to double to more than £60m and staff numbers to increase from 150 to around 400.