Gateshead's Wood Group Industrial Services boost sales by 29% on the back of Royal Navy deals
Additional work on Royal Navy aircraft carriers has taken the Gateshead firm to turnover topping £136m
A buoyant supply of work across the marine, offshore and energy markets has steered a Tyneside industrial services firm to record turnover of £136.9m.
Accounts for 2014 published by Gateshead based Wood Group Industrial Services - formerly Pyeroy Group - reveal a successful year with a 29% sales lift, breaking its own record last year of £106.5m.
Pre-tax profits at the company, which also operates a subsidiary in Ireland, also rose by 45%, from £6m to £8.7m, representing a return on sales of 6.4%.
Net assets at the business also increased from £22.4m to £29.2m, while year-end cash balances were £28.1m compared to the previous year's £16.6m.
Headcount grew significantly during the accounts period, from an average of 1,595 employees each month to 2,076, predominantly within production which had 469 more staff - a lift of 30%.
An analysis of the turnover showed UK sales accounted for almost all turnover with £134.89m, with European sales accounting for £2.04m.
The firm, which now forms part of the John Wood group following a buy-out in 2013, provides scaffolding and painting among a range of other services to industries including the rail, offshore energy, marine, utility, nuclear, chemical and process sectors.
Established in 1973, the firm said the increased level of activity dates back from contracts in 2013, due to additional volumes of work on a series of Royal Navy aircraft carriers, including HMS Queen Elizabeth, HMS Prince of Wales and HMS Ocean, as well as new contracts secured in the process and energy sector.
The company's forward order book at the end of the year also grew considerably, from £150m in 2013 to £192m in 2014.
In a strategic report accompanying the accounts, director Hugh Pelham said: "Customer spending in the company's primary target markets - rail, offshore energy, marine, utility, process and energy - is expected to continue at comparable levels or increased levels compared with 2014.
"It is the company's intent to increase its presence in the on-shore process and energy and offshore energy markets whilst retaining a strong presence in the rail and marine sectors."
Directors did not recommend the payment of a dividend.
19:00, 24 JUNE 2015
BY COREENA FORD
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