The boss of major Perthshire employer Castle Water says the firm has plans for growth after overcoming a difficult period.
Castle Water provides water and wastewater services to companies, charities and public bodies in Scotland and England.
With its customers going in and out of offices during the pandemic in line with restrictions, the utilities company was kept busy.
“The whole Covid period from 2020 to 2022 was hard work,” Mr Reynolds said.
“We were in an unusual position with Covid where companies either had to close or they were busier and with more revenue.
“We had a pattern where customers were moving in and out of premises when lockdowns started and finished.
“That meant we had twice the work we’d have, with about 40% less revenue.”
Mr Reynolds said he felt the firm had navigated the challenges of not only the pandemic, but also Brexit and the cost-of-living crisis.
He said it had been a huge effort from all the Castle Water staff.
“We think we’ve come through the combination of Brexit, Covid and the cost-of-living crisis in a good position to continue to grow.
“Navigating all those challenges has been hard work. It’s been a huge commitment from everyone, but we feel we’ve managed it well.”
One new major contract a week
In recently filed accounts, the firm reported revenue of £395.6 million for the year ending March 2022.
That is an increase of more than £35m from its 2021 figure of £359.9m.
Castle Water also recorded a pre-tax loss of £24.1m over the reporting period, compared to a profit of £1.6m the year before.
Mr Reynolds said the firm has “significant advantages” as it looks to continue its growth.
“We think we have the best billing and service platform in the water industry, which we’ve invested in significantly.
“That gives us a lot of scope to continue to expand our customer base.
“We’re currently winning major contracts at a rate of about one a week.”
Castle Water continuing to invest
Castle Water, which has about 450 staff, has made a number of acquisitions in recent years.
In his strategic report, published alongside the accounts, Mr Reynolds said the firm continues to review opportunities.
Mr Reynolds also said there has been a 20-fold increase in customers using Castle Water’s online portal.
“We expect its popularity will only increase,” he said.
He said the firm was committed to investing in its technology, staff training and state-of-the-art IT systems.
He added: “We’re doing a lot of work in deploying robotic automation around some of our processes.”
Conversation