Thriving marine and energy markets have aided strong growth at industrial services group Pyeroy which has topped turnover of £100m for the first time.
The Gateshead firm, which provides scaffolding and painting among a range of other services to the oil & gas, marine and rail industries, grew sales by sales by 20% to £106.5m in 2013, up from the previous year’s £88.9m, while pre-tax profits also increased, by 36% to £6m, representing a return on sales of 5.6%.
The group's forward order book also increased from £143m in 2012 to £150m.
The workforce has also increased from 1,700 to 2,300 and managing director Hugh Pelham anticipates annual sales of around £125m in 2014 on the back of a series of big contract wins.
The accounts have been published on Companies House exactly a year since the business was acquired by Wood Group PSN, a buyout described at the time as an “ideal fit” by managing director Hugh Pelham.
Headquartered in Gateshead, UK, Pyeroy was founded in 1973 and operates from eight locations throughout the UK, and Pelham said becoming part of the Wood Group complemented Wood Group PSN’s oil & gas capability and gave the North East business the chance to broaden its offering to customers.
A strategic report by the directors, accompanying the annual accounts, said the firm had marked a successful year in 2013 with the marine, offshore energy, process and energy markets faring better than 2012.
The report said: “At the end of 2013 market conditions in the rail/highways market appeared to be continuing to improve with additional infrastructure spend and some clients together with Network Rail adopting a change to a more collaborative contracting model.”
The firm provided a long list of significant contract wins in the marine sector, in offshore energy and onshore oil and gas fabrication, process and energy, infrastructure, construction and environmental sector.
Notable contracts undertaken in 2013 within the marine sector included work on a raft of Royal Navy aircraft carriers and other assault ships, including HMS Queen Elizabeth , HMS Prince of Wales and HMS Ocean and significant projects were also undertaken for global drinks company Diageo and transport firm Nexus.
Hugh Pelham said: “I’m delighted that Pyeroy has reported record results, with a 20% increase in sales and an increase in headcount. Wood Group PSN acquired Pyeroy in July 2013 and it has grown considerably under Wood Group’s ownership. Wood Group PSN’s industrial services business has secured around £40m of new contracts in the first five months of the this year including work with Huntsman Tioxide, Lynemouth Power, Heerema Fabrication Group, Aesica Pharmaceuticals, Fine Organics, Diageo and EnQuest. The Group’s overall forward order book at the end of the year for industrial and fabric maintenance services increased from £143m in 2012 to £150m in 2013.”