Red7 Group Reincarnates as Two New Companies
- Business & Finance
After Red7 Group went into administration, Mike Jones and Martin Spurr have launched Red7 Offshore and Red7 Inshore Diving, aiming to win important diving and marine contracts on oil & gas and wind farm projects and inland/inshore work.
They believe lower overheads, a leaner operation and Great Yarmouth’s reputation for providing more cost-competitive services than other energy regions will help them build the new business.
Jones, managing director, said: “The drop in the oil price hit many companies very hard but we believe there is an upside to the current situation. Great Yarmouth has always been more competitive than places like Aberdeen, and in the current economic climate more and more customers are looking at the supply chain in our area to provide them with services they would previously have sourced elsewhere.
“This is a good time to be in business on the east coast and we believe there will be lots of opportunities for us in inshore and offshore diving, particularly in the exciting arena of offshore renewables.
“Red7 is a lean company with a huge amount of experience and an outstanding reputation for good customer support.”
He said the former Red7 Group had made a profit of £7.2million last year, much of it from Red7’s offshore operations in Great Yarmouth, which enabled the planned investment in new vessels and ROVs. Although Red7 Group had a considerable backlog of work in the Southern North Sea, the sudden and dramatic drop in the oil price had prompted some customers to delay or cancel projects, affecting investor confidence.
“Sadly, on the day of administration itself the company received an order from SNS operator Perenco to deliver a £4million offshore inspection contract, although even this was unable to prevent closure. This is a good indication that work is out there and we have the skills to win it,” Jones said.
“It was a tough time, and still is, but we are determined to rebuild our business with a solid foundation that will provide good quality local jobs,” he added.
Red7 currently has five former staff working on inshore projects, including diving engineers Craig Shiers and Stuart Clarke who are now both directors of the company.