DUNDEE-BASED GA Engineering has cited the downturn in activity in the oil and gas sector due to the low price of Brent Crude as it recorded a loss in its latest accounts.

The precision engineering company, which is focused on the oil and gas industry, booked a pre-tax loss of £1.5 million in the year ended March 31. It made a £1m profit the year before.

In new accounts at Companies House, GA revealed it has reduced its headcount by 17 since year-end year as it looks to reduce costs, while also working to open new markets.

The firm, which said the cuts led to short-term redundancy costs, had an average of 58 staff in the period covered by its latest accounts, down from 65 the year before.

GA slipped to a loss as its turnover tumbled to £3.4m from £6.6m in the year ended March 31.

Writing in the account, the directors trace the fall in revenue to “increased pricing pressure and significantly reduced average quantities on each order”, while stating the number of quotes and orders process “remained at similar levels to prior years” over the period. They warn difficult conditions were likely to persist in the firm’s current financial year.

“While there are signs of the oil and gas market improving given the oil price is over 50 per cent higher compared to the low price set in January 2016, the directors expect the general level of activity to decrease further in the forthcoming year as this takes time to filter through to demand for its services,” the directors state.

“This might, in the short term, outweigh the effects of the actions being undertaken by the company to expand into other industrial sectors, capitalise on opportunities that arise in conjunction with the increased range of services offered by the group and further cost reductions.”