£6m eases renewables move

ELECTRICAL equipment firm Dron & Dickson is expanding from its traditional oil and gas markets into renewable energy after securing a £6 million cash injection.

The Stirling-based business - which was founded in 1927 as an explosives supplier before moving into the oil industry during the 1970s boom - is looking to develop electrical equipment for offshore wind farms.

Managing director Colin Rowley, a member of the Entrepreneurial Exchange, secured the funding from Clydesdale Bank, which has a partnership agreement with the business club.

While Rowley said the deal had not arisen directly from the partnership, he believes the relationship had a bearing on the bank's decision.

He said the firm was also looking to expand its presence abroad, building on its partnerships with Seaharvest in Egypt and Al Yaseah Group in the United Arab Emirates. The company set up an office in Baku, Azerbaijan, in 2009.

Rowley added: "With strong roots in the UK oil and gas industry, we felt it was important to concentrate on expanding our business operations overseas, particularly in energy-rich regions such as the Middle East and Africa.

"With renewable energy also on the rise, a key growth area for the business is providing electrical equipment necessary for the functioning of offshore wind farms."

Adam Heslop, business development partner at Clydesdale Bank, added: "Dron & Dickson enjoys a first-rate reputation amongst oil and gas companies operating both in the UK and overseas.

"International markets offer ideal expansion opportunities for Scottish companies, and we are very pleased to be supporting this established company."

Turnover grew to 27.2m in the year to 31 May from 24.3m in the previous 12 months, the firm said.

Dron & Dickson has more than 200 staff spread across its head office at Stirling and bases in Aberdeen, Hull and Lowestoft, in Suffolk.

The company underwent a management buyout in 2007, which saw Rowley head up a takeover from his family, including his father Arthur Rowley, who retired after 25 years with Dron & Dickson.

In May, the company announced that it had won a 45m contract from an "oil major" but remained tight-lipped on the client's identity, saying only that it had been a customer since 2004. The latest deal will last for five years, with a possible extension for a further four years.Dron & Dickson lists oil giant BP, American energy major ConocoPhilips and Canadian explorer Nexen among its clients, alongside Balfour Beatty and Petrofac.

The company diversified away from its origins as an explosives supplier after a downturn in its key mining and quarry industries.

In the 1970s, it shifted to designing lights for offshore accommodation modules, but then changed again to take on maintenance and inspection management work, winning its first contract with Agip for the Tiffany platform in 1993.

The firm now specialises in designing, supplying and maintaining electrical equipment for "hazardous areas", which could contain explosive vapours, gases and dust.