A Fife firm that supplies steel to some of the UK’s biggest railway infrastructure projects achieved a target-beating turnover of £23.5 million last year.
Pipe & Piling Supplies (PPS) was focused on bringing in revenue of £20m in the 12 months to February, but the actual total was significantly higher and represented a near 70% rise from the previous year’s £13.9m.
Managing director Alistair Cochrane, who led a management buy-out of the Glenrothes-based company a year ago, said its turnover was driven by its relationship with key customers.
During the year it supplied steel to the Edinburgh Glasgow Improvement Programme (EGIP), the £742m package of modernisation and upgrade works by Network Rail for key junctions, infrastructure and widespread electrification of the main line between Edinburgh and Glasgow and to Stirling and Dunblane.
PPS also sent steel to the £2.8 billion Great Western Electrification Project to transform the railway network from London Paddington to South Wales and to Cornwall.
The Corby-Kettering railway upgrade was another of its projects south of the Border.
In the previous year the firm supplied steel for the new station at Canary Wharf due to open in 2018 for London Crossrail Project, the biggest construction scheme in Europe with a total budget of £14.8bn.
Mr Cochrane said the high level of revenue would not continue with the ending of the involvement of PPS in the latest year’s construction projects.
He continued: “A reduction in turnover is expected in the next financial year, however, profitability is projected to be maintained.”
Though turnover in the year to February 2016 was up 70% at £23.5m, costs of sales were also up by 70% at £20.38m.
Pre-tax profit was 76% higher at £1.8m, and Mr Cochrane said gross profit margins are forecast to continue at around 13%.
He stated: “The company has been successful in recent years in positioning itself as a leading supplier of fabricated steel to the rail sector. This has coincided with increased government spending on the rail network.
“The company is positioning itself to take advantage of future contract awards expected during the next financial year,” explaining that it will launch three new products aimed at providing health and safety, environmental and cost benefits across its customer base.
PPS had become one of the UK’s leading suppliers of steel tubular piles and fabricated structures, and he said it would strive to maintain that position.
PPS has a low overhead base and the majority of administrative expenses of £1.35m relate to staff costs and directors’ remuneration. The firm had 11 management and administration employees during the year.
Its headquarters are at Dalton Road, Glenrothes, and stock is held at a site in Yorkshire.
Mr Cochrane has run the business since 2008 and the management buy-out a year ago, financed by Clydesdale Bank, made him the owner.
Back in 2008 its turnover stood at £1.6m, and Clydesdale believed its support would lead it to further expansion and success.
