by Whickham » Tue Sep 16, 2014 11:04 am
Able UK suffers profit drop but remains confident about the future
Able UK has reported large drops in both turnover and pre-tax profit, but states that it remains "well positioned" to grow and expand.
Turnover at the Billingham-headquartered company, which specialises in decommissioning ships and offshore installations, fell to £12.1m for the year ending 31 December 2013, compared to the £18.9m reported for the same period the year before.
Pre-tax profit also fell from £1.18m in 2012 to £719,788 last year.
Despite the results, executive chairman Peter Stephenson remains confident about both the current position of the company and the future.
Writing in the strategic report, he said: "Throughout the financial year the director and management team have been engaged in securing future decommissioning contracts for the company and to this end have been very successful.
"Contracts have been secured to provide work until 2020."
A number of the contracts are for offshore marine structure projects, which Stephenson said was a sector that was "active in 2013 but at lower levels".
Investments are also being made in research and development, as well as attempts to "develop new business streams and markets", with a particular focus on the offshore renewable energy sector.
"In preparation for these works the company has committed significant investment in new plant and equipment," said Stephenson. "Further capital expenditure is programmed for 2014 which will underpin a significant growth in the company's activities and lead to a substantial increase in turnover and profits from 2014.
"The director and management do not consider there to be any specific risks to the business in the coming year.
"The company is financially strong and well positioned to grow and expand its markets and clientele in line with the current visions and expectations of management."
Stephenson added that the company is expecting to reach turnover levels of £28m for 2014, as well as "significant continued growth beyond that".
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Dave