New contracts worth £35 million are helping Aberdeen firm Craig International bounce back after a Covid-hit year of losses.
The deals were secured in the final quarter of 2021 and the global energy industry procurement specialist has reported strong growth expectations for 2022 and beyond.
It comes as accounts for holding company Craig Group show the impact of the coronavirus pandemic on Craig International and its subsidiaries around the world.
Our robust financial position and market-leading reputation have enabled us to weather the storm.”
Douglas Craig, chairman, Craig Group.
Turnover fell to £99m during the 12 months to April 20 2021, from about £136m a year earlier.
The accounts also show a slightly better than break-even position in the latest period, with total operating profits coming in at £15,000 – down from around £766,00 previously.
But losses incurred by unfavourable foreign currency exchange during 2020-21 led to pre-tax losses of £63,408, against profits of about £660,000 the year before.
Craig Group’s latest annual figures also include those of a subsidiary, Grampian Golf and Leisure Associates, which owns the Kings Links golf driving range and superstore in Aberdeen.
Middle East accounts for lion’s share of wins
Craig International said its new long-term contracts for third-party procurement services were with new and existing clients in the UK, South Africa and US, with a major share in the Middle East.
Group owner and chairman Douglas Craig, 72, said: “Despite the disruption caused by the global pandemic during the last two years, Craig International has performed well.
“Our robust financial position and market-leading reputation have enabled us to weather the storm.
“As activity picks up, we are winning new contracts which will see us bounce back and deliver strong growth in 2022 and beyond.”
Mr Craig, whose grandfather, trawlerman George Craig, founded the business in 1933, added: “Our global reach has extended, with an operational base in Oman and significant growth in Dubai and Qatar.
“In North America, we are expanding in Calgary and Houston to service our rapidly-growing local market share.
“And in Cape Town (South Africa) we’ve welcomed a raft of new clients.
“By adapting to the changing energy landscape and updating our award-winning digital procurement platform, e-Buy, we are continually driving increased efficiencies for our clients.
“Environmental responsibility is top of our agenda and our sustainable product offering through our innovative Eco Buy platform, is meeting the demand for responsible and sustainable procurement.”
With nearly 130 staff, Craig International has a global network of pre-qualified suppliers and more than 80 procurement specialists in eight countries.
The firm has bases in the UK, South Africa, Canada, Qatar, Oman, the United Arab Emirates, Germany and the US.
Its digital platform ebuy is an online procurement catalogue introduced to the oil and gas industry more than 10 years ago.
Craig International’s ecobuy service was launched in 2019 at the Offshore Europe oil and gas show in Aberdeen.
It is focused on oilfield products and services that reduce the energy industry’s carbon footprint.
In the holding company accounts, Craig Group said supply chains were “still under strain” and it was working with key suppliers to ensure the availability of raw materials.