COSALT, the provider of safety equipment and services for the offshore oil and gas and marine industries, said yesterday its top-line profits for the 53 weeks to November 1 were down from £7.23million to £5.49million.
When one-off items were taken into account, the group made hefty pre-tax losses of £3.35million compared with profits of £1.49million the year before. Nevertheless, the group said the year had been one of consolidation for its core businesses.
Chairman David Ross said: “As a result of our fundraising in August we have established a stable platform from which to take the business forward.”
That fundraising brought £17million net of expenses to provide financial stability.
Mr Ross added: “The market environment continues to be challenging as our customers delay investment decisions, however, we have taken action to reduce costs in response.
“Importantly, we have been successful in renewing and winning . . . new contracts which will contribute to an improvement in trading in the second half of the year.”
Calum Melville, chairman of Cosalt Offshore, whose principal base is in Aberdeen, and a main board director at the group, said: “We have the building blocks in place and a cost-cutting programme in place.
“Cosalt Offshore has extended agreements with existing clients like the three-year £18million contract extension with energy services group PSN announced this week and has won new clients like Subsea 7 in Norway.
“I believe we are in a strong position to take advantage of the upturn when it comes, although this may not be until the third quarter of 2010.”
Cosalt Offshore, which employs 300 in Aberdeen and a further 110 at operations in Stavanger and Lowestoft, achieved revenue of £44.23million for the 53 weeks to November 1, against £41.85million the year before.
The marine division’s revenue in the latest year was £63.6million, marginally better than the £63.16million previously.