A Dundee-based specialist manufacturer of offshore valves said it had seen a strong start to the year as the oil industry recovers.
Pacson Valves designs, manufactures and tests high specification isolation valves and associated pressure containing equipment.
Newly published accounts show the Claverhouse Industrial Park company’s sales fell last year to £4.3 million for the year ending September 2018, a 34% drop from £6.6m 2017.
The firm showed a pre-tax loss of £664,000 last year against a slim profit of £69,000 in 2017.
However, commercial director John McLaren said Pacson was back in profit this year, with sales of £5.6m recorded in the first nine months of the 2019 financial year.
In his strategic report, he said: “Throughout 2018, Pacson Limited continued to receive tenders from customers at an ever growing rate.
“We produced the related quotations and had active discussions with those customers.
“However, the time taken to receive the related sales orders became protracted and so the extended timeline to the ultimate despatches resulted in these delays having a positive impact on year end 2019, to the detriment of year end 2018
“At the time of signing the 2018 accounts, the management accounts prepared for the nine months to 30 June 2019 are showing a £5.6m turnover and an EBITDA (earnings before interest, taxes, depreciation and amortization) of £347,000, reflecting a marked improvement on the results for 2018.”
Mr McLaren said he expected the improvement in performance to continue for the rest of 2019 and beyond with the company’s order book totalling in excess of £4.7m with order completion dates out to April and May 2020.
He said the company’s investments in staff and equipment meant it was in a good position for the improving oil market.
“The company’s projections for the year to 30 September 2020 and beyond show a growing company resigning a strong EBITDA,” he added.
“During the adverse market conditions of the oil price recession period 2014 to 2018, Pacson Limited continued to make significant improvements in the business, in terms of processes and systems.
“We retained the staff necessary for the upturn in the market and we accelerated out investment in our research and development program, both on existing product ranges and on developing a new range of high specification valves.
“Pacson Limited continues to be well positioned to take advantage of this improving market.”