Dutch geo-data firm Fugro has hailed its “continued recovery” in the third quarter of 2019.
Fugro, which employs 350 people in north-east Scotland and has offices in Dyce and Bridge of Don, increased revenues by 1.8% year-on-year to £385m.
Its backlog for the next 12 months lifted 9.8% to £807m.
Fugro said the improvement was supported by most regions and business lines, with Europe-Africa putting in a particularly strong performance.
Significant awards for the region included a three-year geotechnical site investigation contract in the German North Sea and Baltic Sea for Germany’s Federal Maritime and Hydrographic Agency (BSH) and a geophysical site investigation at Seagreen windfarm for SSE Renewables off the coast of Angus, Scotland.
The company said its marine asset integrity business was showing higher margins and backlog, as the result of selective tendering, asset rationalisation, and a gradually improving market in specific geographies.
Its land business is underperforming, however.
Fugro’s outlook is positive as offshore wind, oil and gas and infrastructure markets
continue to grow.
In the infrastructure market, Fugro expects continued growth, driven by an increase in population, urbanisation and ageing assets, although growth in certain geographies is
expected to slow down due to reduced GDP growth.
For the full year 2019, Fugro expects continued revenue growth, a close to mid-single digit EBIT margin and positive free cash flow from continuing operations.
Capex for continuing operations will be around £60.5m.
Fugro chief executive Mark Heine said: “A year ago we announced our Path to Profitable Growth strategy and since then, we have been rapidly expanding in new growth markets such as renewables, hydrography and water management.
“Together with infrastructure, these markets now represent half of our business. Capitalising on our position as the leading Geo-data specialist offers great opportunities for Fugro in a rapidly changing world.”