Turnover reached new heights at Aberdeenshire pipeline technology specialist Stats in a year they were acquired by a Japanese company.
Accounts revealed the Kintore-based company saw turnover increase by 26% to £74.7 million with pre-tax profits of £3.1m in the financial period ending December 31, 2023, up from the £1.2m in 2022.
Chief executive Stephen Rawlinson revealed 87% of revenue was generated beyond the company’s home market.
And Stats is already on course to complete yet another record year.
Demand to increase over coming year
He said: “The group has delivered an excellent trading result for the year, with 87% of revenue derived from activities outside the United Kingdom, reflecting our ongoing commitment to develop and invest in localised operations in key international markets.
“With growth in the global pipeline integrity market, coupled with our clients’ preference for locally delivered products and services, we expect demand to increase over the coming year in all our markets.
“Revenue is anticipated to be higher than that achieved in 2023 and staff levels are again expected to increase to meet the anticipated growth in demand.”
Stats staff numbers on the rise
Stats currently employs 159 people in Kintore and has international bases in Canada, the US, Abu Dhabi, Saudi Arabia, Oman, Qatar, Malaysia and Australia.
Staff numbers have grown at the company with 364 people employed in 2023 compared to 339 in 2022.
The accounts revealed this led to staff costs increasing from £21.8m in 2022 to £26.2m last year.
Global presence growing
Stats, which was taken over by Japanese firm Mitsui last year, recorded a number of important operational milestones, with Mr Rawlinson adding: “We have made significant progress establishing strong relationships in key markets, differentiated with our market leading technologies that will continue to drive future growth in market share.”
A major breakthrough in the Middle East pipeline sector was reflected in revenue growth of £29.8m, up from £19.7m recorded in 2022.
In the United States, the company continued to broaden its customer base with notable expansion in supplying products and services to the offshore market, but turnover did decrease from £14.8m to £9.5m.
While in Canada, which is the group’s primary fabrication hub for North America, figures grew from £12.5m in 2022 to £17.6m.
The strategic report accompanying the accounts said: “A capital expenditure programme of £7.5m has been approved by the directors for 2024, reflecting the need to continue to increase the size of the group’s operational asset base in certain locations.”
Stats history
The Mitsui deal saw Stats Group combine with Mitsui’s iron and steel business unit.
Mitsui’s swoop for the business came just over a year after a £73m all-share takeover of the north-east firm by Jersey-headquartered SRJ Technologies was scuppered by “market volatility”.
Stats cited macro, geopolitical and supply chain events as the factors behind that deal’s collapse.
The company was founded by Pete Duguid and his sister, angel investor Lorraine Poter, in 1998.
They owned the pipeline technology specialist alongside BGF and other investors before the takeover by Mitsui.
Mr Rawlinson said: “The sale of Stats to Mitsui & Co, was concluded in August 2023, and excellent progress has been made on integration across the business, including building on synergies and co-ordination of market development opportunities.
“We are on pace for yet another record year.”
