EnerMech Predicts Fruitful 2014

EnerMech Ltd has predicted 2014 turnover will increase to more than £280 million, a jump of £80 million on the current year’s forecast and double the £144 million revenue recorded in its 2012 annual accounts.

The Aberdeen-based company’s 2012 group accounts showed an £11 million profit (EBITDA*) on revenue which grew 41% from £102 million, and it expects 2013 EBITDA to break the £20 million barrier.

The mechanical engineering group reported that in the same period its UK domestic revenues topped £100 million for the first time (£101 million), up 38% from £73 million, and EBITDA increased from £1.9 million to £5.3 million.

Managing director Doug Duguid said performance in traditionally mature markets such as the UK showed 32% year on year growth, with non-UK revenues increasing by over 56% with Asia and Norway performing particularly well.

Strong trading in the current year, the acquisition of three strategic businesses and expanding its international presence to over 30 facilities in 18 countries, will strengthen EnerMech’s 2013 financial performance and push revenues over £200 million, with an expected £80 million uplift in 2014.

The company last month announced it had secured a £90 million funding package by establishing a ‘banking club’ including Bank of Scotland, DNB and HSBC, and that a combination of further investment in infrastructure and acquisitions would create 700 new jobs.

In the Director’s Report for the 2012 accounts, recently filed at Companies House, Doug Duguid, said: “The impact of global recession, a trend towards commodity pricing within certain sectors and targeting new geographies did not impact the group’s gross profit margin, which grew from 22.4% in 2011 to 22.9% for the current year [2012].

“This is particularly pleasing given the significant investment during the year in additional resources and operational overhead required to establish a solid base for future operations, predominantly within the Africa and Americas regions and within the Valves business line.

“Growth in EBITDA of over 31% from £8.3 million in 2011 to £11 million demonstrates the improvement in performance achieved [in 2012]. The directors believe that the continuing investment in top quality regional and functional management, along with investment in the competence and development of EnerMech employees, will provide a solid base from which to deliver further global expansion.”

[mappress]
Press Release, November 21, 2013