A Dundee firm which supplies subsea valves to the global oil and gas sector has seen profits more than double.
Newly published accounts show that Pacson Valves saw turnover push more than £1.5 million ahead to £12m in the year to September 27, while pre-tax profits also increased considerably in the period from £390,991 in 2011/12 to £833,446.
The firm produces a range of subsea valves from its state-of-the-art manufacturing facility at Claverhouse Industrial Park, and has satellite sales offices in nine of the major oil and gas producing regions worldwide.
The firm’s operations were impacted in the period following the financial crisis as the oil and gas market in general took a hit.
In their report to the accounts, managing director Keith Crawford and commercial director John McLaren said the subsequent upturn in the market had also presented challenges, but the full-year outcome had been positive.
“The principal activity of the company continues to be that of the design, manufacture and testing of high-specification isolation valves and associated pressure-containing equipment,” they said.
“As was predicted at the start of the year, activity and opportunities improved during the period as the oil and gas market recovered from recession. Growth was, however, impacted by the ability of the supply chain to react to the improving market conditions.
“This led to some difficult challenges for the company during the year but, despite this, the company still achieved reasonable growth.
“The company continued to make significant investment in product research and development over the period to support our long-term growth strategy.
“The projection for the coming year is for demand stability within the markets, with continued development of the customer base and introduction of new products leading to further growth.”
More than two-thirds of the firm’s business was carried out in the UK during the year, with revenues from home markets increasing from £6.62m to £8.4m. Overseas-derived sales fell marginally during the period from £3.83m to £3.6m.
The accounts show the firm which is controlled by parent company Evotek grew its workforce by 10% in the 12-month period to a total of 103 employees.
Mr McLaren yesterday said Pacson had continued to recruit new personnel in recent months and the headcount was now “north of 115” and the outlook for the business was good.
“Our order book is strong and we are predicting 20%-plus growth on our 2013 numbers this year,” Mr McLaren said.