Energy service firm Texo Group has “parted company” with its managing director and replaced him with its owner’s son.
Texo – which is headquartered in Westhill, Aberdeenshire, and has a base at the Port of Dundee – has also “refined” the business by trimming the number of group divisions to six from almost 10.
Company bosses believe the streamlined group can capture a bigger market share and turn a profit in its second full-year of trading.
The push will be spearheaded by new group managing director Chris Smith, whose father is executive chairman and backer Hayden Smith.
Mr Smith Jnr said predecessor Robert Dalziel had “taken the business as far as he could”.
Mr Dalziel declined to comment.
In September, Mr Dalziel said Texo had enjoyed “stratospheric” growth and lauded Mr Smith Snr, 80, for supporting the business.
New boss Mr Smith Jnr, 45, worked in the scaffolding trade for about 30 years with Trad Scaffolding.
The sale of that business to French giant Altrad six years ago made his father’s fortune.
Mr Smith Jnr remained with Trad for several years after the transaction. He then joined Texo’s drone survey and inspection business, which he manages from its headquarters in Essex.
Following the reshuffle, much of the day-to-day running of Texo Group will be handled by commercial director John Black.
He said Texo would focus on raising the group’s profile and making sure the market is aware of the “full scale” of its design, construction and maintenance “competencies”.
Mr Smith Jnr said he felt Texo had fallen short in that regard.
Major projects awarded to Texo include the upgrade of a Valaris-owned jack-up rig at the Port of Dundee as part of a contract worth in excess of £1 million.
Orkney-based Orbital Marine Power has picked Texo to manufacture its new O2 tidal turbine, again in Dundee.
Upon launching in July 2018, Texo said it would create up to 1,000 new jobs and generate annual revenues in excess of £100m within five years, and that remains the ambition.
The group has expanded rapidly during its fledgling weeks and months through acquisitions and the opening of new offices and manufacturing bases.
Dave Penny, group finance director, said Texo turned over about £22m in its first full accounting period, to November 25, 2019.
Mr Penny said the group hadn’t made a profit in that time, but stressed that Texo hadn’t anticipated a surplus in year one.
He said bosses had prioritised an “aggressive growth strategy” and made a conscious decision to get infrastructure in place early. He said Texo would now focus on “the bottom line”.
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