One of Glenrothes’ largest employers has hailed a “successful” year for its string of Fife-based businesses, with profits boosted by new investment, declining overheads and burgeoning order books.
FTV Proclad director Duncan McDougall said the collection of oil and gas-focused companies, based on the Viewfield Industrial Estate, had stepped up margins during the year to November 30 despite a softening in some revenues due to project delays.
The largest, FTV Proclad International, saw turnover fall more than 20%, but profits rose more than 15-fold to £2.6 million. The performance was helped by waiving of a £1.4m intercompany debt.
In their report to the annual accounts, directors hailed improvements in product delivery and a greater proportion of turn-key services despite the reduction in sales. They said the outlook remains “very positive”.
“Even though turnover was down, the order book was at its highest-ever level, and turnover only fell because some projects were delayed,” Mr McDougall said.
“There is plenty of work there and we have also got very good margins.”
Productivity has been boosted by large-scale investment in new plant machinery, he added, with new equipment now beginning to make a significant impact.
The company revealed a £6m spend on new tools, backed by Scottish Enterprise though £750,000 in regional selective assistance funding, in August.
It is working on a £10m order for 20, 11-spool sub-sea manifolds. The company’s largest-ever deal, awarded by GE Oil & Gas, is expected to take 18 months to complete, with staff currently working on the fifth unit.
The equipment is for a major project in Western Australia operated by Inpex.
FTV Proclad (UK) Ltd, which includes tooling, pumps and packaging divisions, saw turnover rise 8% to just less than £8m during the period, with pre-tax profits climbing 21.5% to £2.6m. Directors described the performance as “successful” amid a buoyant global market and said the firm had a strong market position.
Pipe-bending firm Proclad Induction Bending Ltd saw revenues fall 55% to £3.5m, but profits rose more than 20% to £321,322.
Heat treatment and component forging specialist Proclad International Forging saw business rocket 17% to £7.1m and profits shoot up by 58% to £1.5m.
Proinspection Ltd posted annual pre-tax losses of £231,584 after just 18 months of trading. Mr McDougall said activity in the company would step up significantly over the coming months as it seeks to expand its operations beyond the start-up stage.
The five companies regularly work in partnership on projects, with some cross-over of revenues.
Around 330 people are employed across the five businesses, all members of the wider Channel Islands-registered Proclad Group which is owned by the Kuwaiti National Industries Group.
A total of 23 employees are undertaking apprenticeships in Fife, with seven having started their programmes this year.