Forfar-based oilfield services firm RMEC plunged into the red in a dramatic £1.8 million turnaround in its fortunes last year.
The previous year’s pre-tax profit of £1.45m became a loss of just under £400,000, with business suffering as the North Sea oil and gas industry’s depression continued..
The bottom line deficit resulted from turnover in the 27-employee firm plunging by almost 40% from £9.27 million to £5.7m.
The board offered no comment on the performance in their annual report and financial statements for the year to March 2016 which have been submitted to the Registrar of Companies.
RMEC’s latest position contrasts with 12 months ago when it announced it was planning a major expansion drive aimed at producing a turnover of £16 million in four years.
The performance to March 2015 was achieved on the back of a £7.7m investment by Maven Capital to fast-track RMEC’s growth in the North Sea oil and gas sector.
The investment allowed the rental fleet to be expanded and the workshop and storage areas to be further developed in a 150% expansion of facilities.
RMEC, at Cotton of Pitkennedy, was established in 2004 and specialises in the maintenance, pressure testing, re-certification, manufacture, supply and rental of well services equipment to the oil and gas industry.
RMEC managing director Bryan Fagan said a year ago the collapse in the price of oil posed challenges for the industry in the North Sea.
RMEC’s products were used in the operational expenditure sector of the oil and gas industry, and he said they should be sheltered from short-term variations to the price of a barrel of oil.
*A new survey has revealed a dip in confidence among Scottish manufacturers about their prospects for growth in the year ahead.
Almost one in four blamed uncertainty following the EU vote and nearly one in three cited global economic concerns as the main barrier to growth.
The latest manufacturing survey by Dundee-based Henderson Loggie was in conjunction with the MHA association of UK independent accountancy firms and Bank of Scotland.
The proportion of companies confident of growth in the coming year stood at 60%, 14% down on last year’s results and below the UK index of 69%.
Last year’s poll showed that only 4% of Scottish respondents, and 10% of all respondents for the UK as a whole thought it would benefit British business to leave the EU.
Post-Brexit 13% of respondents had a positive outlook and 39% expressed a negative view. The remainder opted to remain neutral.
Scottish manufacturers were lagging behind their UK counterparts with 45% reporting growth for the last 12 months, down 22% from the previous year.The UK figure was 59%, a drop of just 7%.
Henderson Loggie Partner Gavin Black said: “This dip in confidence is worrying for the sector.”
Green shoots of optimism included Michelin confirming a further £15m investment at its Dundee operation and GSK committing a further £110m to manufacturing at Montrose.
