Sparrows reports strong profit and turnover growthCompany News // August 30, 2013
Sparrows, the specialist in offshore lifting and mechanical handling services, has announced an excellent trading year in 2012 with increases in both profits and turnover.
Earnings at the Aberdeen head-quartered company before interest, tax, depreciation and amortisation (EBITDA) were £20.8 million with turnover reaching £188 million. In comparison, profits in 2011 were £17.5 million on a turnover of £172 million. The UK accounts for 53 per cent of total turnover with international sales making up the remaining 47 per cent.
Doug Sedge, chief executive officer at Sparrows, said: “In 2012, we won significant new contracts, as well as renewals and extensions, across all our bases, indicating that we are meeting the needs of our customers and delivering project excellence.”
Sparrows also increased staff numbers from 1,649 at the beginning of 2012 to 1,748 by the end of the year. The company is continuing its recruitment drive to build capacity for future work with opportunities in engineering and operations positions both onshore and offshore including mechanical engineers, mechanics and electricians.
Mr Sedge added: “In addition, we secured a new investor and carried out a major restructure of the business, lowering our debt by a third. These achievements not only allowed for continued growth but have paved the way for an even more successful year in 2013. Our first quarter was extremely robust and forecasts for the full year are positive compared to budget.”
Sparrows Offshore traded as a group throughout 2012. However on 24 October 2012 the trading subsidiaries of the group were acquired to form a new Sparrows Offshore Group of companies. Subsequently the accounts most recently lodged at Companies House for Sparrows Offshore Group Limited are only for the period following incorporation (23 August 2012 to 31 December 2012). The commentary in these accounts takes account of the full trading year’s figures and reveal the 17 per cent increase in profits and 8 per cent increase in turnover.
Sparrows provides oilfield engineering services. The company specialises in offshore lifting, crane engineering and services, mechanical handling, pipe and cable lay systems, fluid power engineering, equipment rentals and competence training.