Aberdeen-headquartered energy procurement firm Craig International is to offer “new services” as it diversifies beyond North Sea oil and gas.
Joint managing director Steve McHardy revealed the firm has recently won some new non oil and gas related contracts describing it as “refreshing”.
He was speaking as Craig Group, which includes Craig International and other subsidiaries, saw turnover grow from £188 million to £197 million.
However, pre-tax profit, for the period to April 30 2024, dropped from £2.4m to £1.2m.
New work outwith energy industry
Mr McHardy described the north-east energy sector as having “plateaued”.
He said: “We’ve got some new non-oil and gas related contracts that we’ve taken on board.
“To pick up some new work, not within the energy industry, is quite refreshing, to be honest.
“So we’ve diversified to a certain degree, and we’re going to be offering this year some new services.
“Our focus for many years now has been international growth, and that’s what we’re pursuing.”
Staff numbers at Craig Group have grown from 159 to 177 within the past year leading to the wage bill rising to £7.6m.
International growth
International business now accounts for 77% of the firm’s revenues.
Steve said: “We’ve had a fairly sizable growth in our international side which has contributed to the higher turnover.
“The markets that we’re in now are getting a little bit more mature, especially our Middle East division which is performing really well.
“With regards to the drop in profit, that is purely down to a huge investment in our two new bases, in Australia and Singapore.
“We always know when we open new bases, there’ll be a period of pain, until they are fully up and running.
“But that is coming round now.”
Craig Group chairman, Douglas Craig, said: “Craig International is committed to providing our global client base with first class, sustainable and efficient procurement services, and these results underline our willingness to invest in new regions to meet demand.
“New business in these regions has contributed to our growth but the significant costs in setting up new global operations have impacted on our profits.
“However, we are confident that we will see a return on those investments in subsequent years.”
Craig International opened its new 10,000 sq ft Aberdeen headquarters in 2023.
Conversation