A Scottish firm that supplies remote-operated submarines for use in the North Sea and abroad has secured £8 million funding in its first 14 months in a sign of investor enthusiasm for the oil and gas and energy sectors.
Aberdeenshire-based Rovop has won backing from a range of sources since it was incorporated in June last year amid a boom in activity in global oil and gas and renewable energy markets.
Founded by two veterans of the oil services business and a lawyer who moved into private equity, Rovop targets a lucrative niche.
The company supplies unmanned vessels used to complete work on installations underwater. Its services range from inspecting oil and gas platforms to laying wind farm cables.
Managing director Steven Gray said: "We are seeing significant growth in challenging subsea environments, such as deepwater and offshore wind farms, where strong currents and constant scouring provide a completely different set of challenges to our clients."
While the company has only been trading a short time, Rovop has already won business and backing from around the world.
The company won £1.6m investment from the Scottish Loan Fund, with an option to draw down £5m in total.
Rovop said the funding will allow it to buy more vessels after it won long-term contracts with major marine contractors.
The subsea specialist was one of four companies selected this month for support by the manager of the Maven Capital fund. The firms were awarded £5m in total with the option to draw down £9m in total.
In June The Herald revealed Maven was poised to complete a number of financing deals for Scottish companies for the Scottish Loan Fund.
The fund recently won commitments from private sector players totalling £19m, taking the total secured to £113m. It has committed £15m to six companies since it was launched in February 2011.
Rovop has been provided with a £1m working capital facility by Royal Bank of Scotland. It has also secured £2m lease finance from undisclosed private investors.
Yesterday the company announced it has been awarded £60,000 by Scottish Enterprise and Scottish Development International to support growth at home and overseas.
The money will allow Rovop to hire a manager for international business development opportunities.
Mr Gray said: "The focus on international markets is a vital step for us. Demand for our products and expertise continues to grow both at home and abroad and the appointment of someone who can manage our international business is part of our plan to match our geographic reach to that of our international client base."
After a stint at law firm Dundas & Wilson, Mr Gray worked at Bank of Scotland and Lloyds Development Capital. He set up Rovop with Mark Vorenkamp and Scott Freeland – who are both from oil services backgrounds.
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