EnerMech forecasts 拢100m leap in revenues

Image source, EnerMech

Engineering group EnerMech has forecast a 拢100m leap in revenues this year, after expanding and diversifying its business.

The Aberdeen-based firm said it expected trading to increase to about 拢360m, having posted revenues of 拢263.7m in 2016.

Global profits are forecast to climb from 拢24.8m to about 拢42m.

Enermech said its performance was being underpinned by a "strategic expansion" into new sectors and acquisitions.

The company has been shifting its focus from the energy sector into new markets, including renewables, defence, power, infrastructure and petrochemicals.

It currently employs 3,000 staff across 40 locations in the UK, Europe, the Middle East, Asia, Australia and the Americas.

Image source, EnerMech

In January, it bought electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US.

The move expanded the group's capability beyond its original mechanical focus, giving it access to large-scale infrastructure projects and entry to the metals and utility sectors.

Its financial results have also been boosted by a strong performance from its US business, which has secured contract wins in the LNG (liquefied natural gas) and petrochemicals markets.

It expects 2017 revenue in the Americas to double to more than 拢60m and staff numbers to increase from 150 to about 400.

Other successes this year have included a five-year contract to provide hose and hose fittings supply and services for a liquefied natural gas facility in Australia.

In April, it also won 拢40m worth of contracts with international operators in the Caspian region. The deals included providing valves, cranes and lifting, as well as training and industrial services.

EnerMech chief executive Doug Duguid said: "Prudent cost savings, a strategic expansion into new sectors, and carefully-targeted acquisitions, underpin what is an encouraging set of financial results."

He added: "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 in to other important markets such as infrastructure and utilities."