The slump in the oil price has led to a dip in profits at Fife heavy precision engineering firm FTV Proclad International.
The business, one of Glenrothes’ biggest employers, saw turnover rise by 22% to £15.6 million in the year to November 30.
Pre-tax profits fell to £1.05m in the year, down from £2.6m in 2013.
However, the 2013 figure included the waiver on a £1.4m inter-company loan.
Proclad International Ltd operates primarily in the oil and gas industry and is part of the Proclad Group, a global conglomerate of engineering companies with its head office in the United Arab Emirates.
The group also has interests across a range of other sectors including plastics.
The UK Group has nine businesses based in Scotland, with eight in Fife and one in Livingston.
Together they employ around 360 people, with around 180 now employed directly by FTV Proclad International.
The unit provides a range of engineering services including precision machining, induction pipe bending, metal forging, fabrication and overlay weld cladding, a specialist corrosive protection service to the sub-sea sector.
Between 80% and 90% of products are exported, with key markets including the USA, West Africa and Western Australia.
Group finance director Mark Penman said the UK businesses had endured a “challenging year”, with some companies performing better than others.
Although sales had increased, profit margins were down as achievable prices in the oil and gas market were squeezed and operating costs continued to rise.
Mr Penman said that although FPV Proclad’s order book remained strong, it is about to enter the new financial year with a record number of contracts on its books, the depressed oil price was causing a squeeze on margins across the industry.
The company was founded in Glenrothes 40 years ago, and Mr Penman said the “brand remains strong” and well-positioned to confront the challenges facing the oil industry.
Proclad announced last year it was investing £6m into new equipment for its Glenrothes factory and is now half-way through the upgrading project.
Its strategic review, contained in its new accounts, states: “The company’s reputation for delivering a world-class service continues to grow with record order levels being carried forward into the new financial year for the second year in a row.
“It is this success which has allowed the company to continue into the second year of a publicly announced four-year investment plan with a high level of confidence in its existing business strategy.
“As a result of the company’s strong trading performance in the year, the balance sheet has continued to strengthen with net assets increasing to £9m, an increase of 9.9% on the previous year.”