Craig Group predicting a return to profit growth this year

Craig Group, the global shipping and energy services firm, will report a profit pick-up this year after a restructuring and "challenging" trading impacted its 2010 results.

• Douglas Craig is upbeat about the group's performance, predicting growing profits again in 2011

The Aberdeen-based business, which is in its third generation of family ownership, booked a pre-tax profit of 10.7 million in the year to 30 April, down from 15.5m a year earlier.

Its annual accounts, newly filed at Companies House, also reveal that turnover fell from 104.7m to 92.4m.

Managing director Douglas Craig described the results as "steady" against a backdrop of "continued global financial uncertainty".

The group employs almost 1,000 staff, having grown its headcount slightly during the year. Areas of focus include offshore support, the provision of rescue and response vessels and oilfield procurement.

While turnover at the group's North Star shipping business held relatively steady last year, its international supplies arm saw sales slide almost 4m to 22.9m amid "difficult trading conditions".

The firm pointed to a global downturn in the oilfield procurement sector, while the disposal of its food services business also contributed to the fall in group-wide turnover and profits.

Craig, who is also listed in the accounts as the company's chairman, said: "These results reflect the challenging trading conditions in 2009-10 and the final implications of our restructure to focus on our core activities, after divesting of Craig Group Food Services in 2009. Although there was a dip in Craig international supplies' business as a result of market conditions, this picked up significantly towards the end of the financial year and this division is already performing well ahead of targets this calendar year."

He added: "Our forecasts for 2011 are very promising with profits predicted to increase as a result of the continued investment in new vessels and oilfield procurement markets picking up."

Turnover at the North Star division came at just below 63m in the year to April, down slightly on the 64.3m reported for 2008-9.

Craig said the shipping arm continued to perform "in line with expectations". A 130m programme of new offshore support vessels was completed with the delivery of the "Grampian Citadel", while the group last year announced a further investment of 35m in its fleet with four more emergency response and rescue vessels to be delivered in 2012.

"This substantial investment now amounts to 20 new vessels in the last seven years and gives us one of the most modern and safe fleets in the North Sea," added Craig.

The accounts show the overall bill for staff wages, social security and pension costs rose to 27.1m from 26.2m a year earlier. The highest-paid director received 706,000, up from 649,000.