A Dundee-based specialist manufacturer of offshore valves saw turnover soar by 85% as it moved back into the black.
Pacson Valves designs, manufactures and tests high specification isolation valves and associated pressure containing equipment.
Newly published accounts show turnover at the firm leapt from £4.3 million in 2018, to £8m for the year ending Octover 4, 2019.
The figures show a dramatic reversal of fortune for the firm who made a pre-tax loss of £704,000 in 2018, against a pre-tax profit of £90,000this year.
In his strategic report, director Keith Crawford said: “Following the oil price recession of 2014 – 2018, the results for the financial year 2019 showed a marked improvement on the previous year, with turnover increasing by over 85% and a return to profitability.
“The year was, overall, very positive with a welcome return to profitability and a strong order book throughout the year, and beyond the year end.
“The market at year end appeared to be stabilised and fully recovered from the recession and so the company was able to plan for the future and for further growth with some confidence.”
Mr Crawford said the returning market in 2019 brought with it a significant amount of price pressure on new orders which had reflected in a drop in margins, while the start of 2020 brought two specific issues – the Covid-19 pandemic and the increased funding required to support the business during its next level of growth.
He said: “After a short shutdown due to the pandemic the existing order book was rescheduled throughout the remainder of 2020 and into 2021.
“Like many other companies, financial year 2020 for Pacson Limited looks considerably different from what was originally planned.
“However, the management accounts to date show an overall improved position from 2019, with increased turnover and increased profit.”
He said: “Around the year end, the company experienced a large intake of orders for shipment throughout financial year 2020 and this provided further confidence in the market and for the future trading of the business.”
Mr Crawford added Covid-19 had reduced demand for oil and caused oil prices to fall again.
He said: “This low oild price, which is likelyt to continue until there is a global solution for to Covid-19 had had a negative impact on the current order intake.
“The company has responded accordingly and has had to to assess the workforce level in 2020.”
The business started in Carnoustie in 1992 and originally focused on small bore, high pressure valves.
It relocated to its current premises in they city’s Claverhouse Industrial Park in 2008.
Over the trading period, the sales in the UK delivered £3.4m, while overseas markets saw £4.6m in sales.
Staff costs rose from £2.8m in 2018, to £3.4m last year.
The firm said it will continue to monitor the effects of Covid-19 and Brexit.
The company was under the control of managing director, K D Crawford via his 100% controlling interest in the parent company, Pacson Holdings Limited.