A multi-million pound contract to operate a cross-Thames ferry has helped Fife-based marine services group Briggs Commercial to deliver a significant increase in profits.
New accounts published at Companies House show turnover at the Burntisland-based group surpassed £50 million in the year to March 31, an uplift of more than £8.2m on the firm’s 2013 return.
Pre-tax profits for the year came in at £2.76m, a million pounds higher than for the 12 months previous.
The firm’s marine support services division was a significant contributor to the improved performance as revenues associated with operating the hiistoric Woolwich free ferry on behalf of Transport for London came on-stream.
The company – which employed an average of 585 staff during the year – secured a seven-year £50 million-plus contract to run the 126-year-old cross-Thames link in late 2012 and took over as operator in the Spring of 2013.
More than 20,000 vehicles use the service each week and it carries around 2.5m passengers on an annual basis.
“Group turnover for the year of £50.3m reflects an increase of 19% on the previous year,” director Robert Briggs said in his strategic report to the accounts.
“Revenues in the marine assets business unit from vessel hire remain similar to the previous year, whilst revenues from oil and gas terminal operations have decreased, reflecting a full year’s closure of a client’s site as a consequence of them entering administration.
“Revenues in marine support services have incraesed significantly, reflecting the commencement of operational service delivery on a new contract with Transport for London to maintain and operate the Woolwich Free Ferry service across the River Thames.”
Mr Briggs said trading had been “resilient” and in line with expectations in the current financial year and the company was continuing to develop its green energy offering as well as bolstering its presence in the traditional oil and gas market and in subsea cab-laying. It is also targeting the marine navigation market as a growth sector.
“The group has had an excellent year of trading against the backdrop of a difficult economic climate and, in the short to medium term, we expect to achieve further growth over most existing market sectors,” Mr Briggs continued.
“The offshore renewable energy market is a major area of growth and with our experience of wind, wave and tidal energy projects we are well placed to take advantage of the many opportunities which are arising.
“The company also expects to expand further into the market for provision of maintenance services to marine navigation aids.
“Additionally, there are many opportunities for growth of the environmental services division in the UK through continued development of a turnkey service offering training and consultancy.
“In November 2014, the company secured a further new contract for maintenance of the SPM (single point mooring) in Falklands for the UK MoD.
“Taking account of all these factors, the company expects to achieve organic growth in revenue for the year 2014/15.”