Forfar-based hydraulic and mechanical engineering firm RMEC Group made a pre-tax profit of more than £1.2 million in its first year of trading after a restructure.
The holding company was created after a management buy-out in April last year made possible by a £7.5m investment from Maven Capital.
RMEC, at Cotton of Pitkennedy, was established in 2004 and specialises in the maintenance, pressure testing, recertification, manufacture, supply and rental of well services equipment to the oil and gas industry.
The private equity firm said the investment in RMEC would help fast-track the company’s growth in the North Sea oil and gas sector.
It would expand its rental fleet and allow the further development of the firm’s workshop and storage areas.
Director Bryan Fagan said the holding company had traded successfully in the year to March 2015, since acquiring RMEC Ltd and RMEC Rentals.
As it was the first year of trading, there were no figures to compare with the previous year but the business had made a solid start.
A strong leadership team was in place and the company benefited from a strong technically competent workforce.
Employee numbers had doubled to 28 during the course of the year and he expected the number to be maintained for the next 12 months.
He added: “The business is in a strong position and is well positioned to exploit the opportunities in the year ahead.”
The collapse in the price of oil from $115 to less than $50 a barrel posed challenges for the industry in the North Sea, he said.
The group was exposed to economic risks associated with the low oil price and the level of new exploration or decommissioning every year.
Although mindful of the oil price reduction, Mr Fagan said RMEC’s products are used in the operational expenditure sector of the oil and gas industry and should be sheltered from short-term variations to the barrel price.
RMEC Group had a turnover of £9.274m. With cost of sales at £4.8m, administrative expenses of £2.2m and interest charges of £1m, the pre-tax profit for the year was £1,232,810.